Coal news and updates

Madhya Pradesh Mining faces IMG wrath

February 7: The Inter-Ministerial Group, set up to review the progress of development of allocated coal blocks and their associated end-use, has recommended deduction and encashment of bank guarantee (BG) in respect of Marki Barka coal block allotted to Madhya Pradesh State Mining Corporation Limited (MPSMCL).

The block had been allocated in July 2007. However, the IMG, taking into account the issues brought before it, including the fact that at all requisite clearances are pending, noted that it was a regionally explored block and, hence, detailed exploration had to be done by the allocatee.

After the detailed exploration, the allocatee prepared the GR and obtained approval of the mining plan in February 2013. However, environmental and forest clearance are pending at the Ministry of Environment & Forests (MoEF).

The IMG has thus recommended deduction and encashment of proportionate BG linked to the milestones set for development of the block as per the allocation letter.