Coal news and updates

MoC seeks de-allocation of lignite block allocated to NSL Power

November 11: The Ministry of Coal has directed that the Merta Road lignite block allotted to NSL Power and Infratech Limited should be de-allocation and the bank guarantee in respect of the same should be forfeited, according to an official communication.

The inter-ministerial group (IMG), taking into account that there was no substantial progress in the development of the lignite block even after the issue of the show cause notice on May 4, 2012 and the disinterest shown by the allocatee by not renewing the bank guarantee (BG), has recommended that the block should be de-allocated.

The IMG further recommended forfeiture of the BG in this case. Keeping in view the fact that the BG had expired, the IMG also recommended that the MoC should effect the recovery of the BG amount by adopting revenue/recovery proceedings.