Coal news and updates

MoC upholds IMG decision on BG deduction of Chendipada block

March 3: The Ministry of Coal, upholding the decision of the Inter-Ministerial Group (IMG), has called for a deduction of the bank guarantee (BG) of the Chendipada coal block allotted to Uttar Pradesh Rajya Viyut Utpadan Nigam Limited, Chhattisgarh Mineral Development Corporation and Maharashtra State Power Generation Corporation Limited.

"The recommendation of the IMG has since been considered and accepted by the government," an MoC release said.

Consequently, the BG to the extent of Rs 16.659 crore has been invoked and will have to be deposited with the government.

The IMG had not proposed de-allocation of the block but had noted that as per the terms and conditions of allotment, 50% of the BG is linked to the milestone set for the development of the captive block and the remaining 50% to guaranteed production, once this commences. In the event of lapses in achievement vis-a-vis the milestones set, a proportionate amount will be encashed and deducted from the BG.