Coal news and updates

IMG slaps BG on JSPL, Bhushan Power for delay in block development

March 10: The Inter-Ministerial Group (IMG) has decided to slap a bank guarantee (BG) on two coal blocks, Utkal B1 in Odisha, allotted to Jindal Steel & Power, and Jamkhani block, also in Odisha, awarded to Bhushan Power & Steel for their inability to develop the blocks as per schedule.

Furthermore, Abhijeet Infrastructure's bank guarantee with respect to its Brinda, Sisai and Meral coal blocks will be deducted and encashed, the MoC said through an official release.

Where JSPL and Bhushan are concerned, the IMG took into consideration that the EC and FC had been obtained and 95% of the land had been acquired. But granting of mining lease and mine opening permission are pending and that against the scheduled date of production of March 29, 2007, the mine is not yet operational.

Accordingly, the IMG has decided the company will have to furnish a bank guarantee, which will be calculated by the Coal Controller's Office at Rs 68.53 crore (for JSPL) and Rs 34.58 crore for (Bhushan), which is equal to one year's royalty.

In the case of Abhijeet Infrastructure, it had obtained EC and FC-Stage I clearances. However, the mines have not started production against the scheduled dates (May 26, 2008, for Meral and November 26, 2008 for Brinda and Sisai).

Hence, the BG of Rs 2.45 crore in respect of Sisai, Rs 5.31 crore for Brinda and Rs 7.48 crore with regard to Meral have been invoked and must be submitted with the government.