Coal news and updates

No amount invoked from BG of Ardhagram coal block

The Inter-Ministerial Group (IMG) has decided not to invoke any amount from the bank guarantee (BG) submitted in respect of Ardhagram coal block, earlier allocated to Sova Ispat Ltd and Balaji Sponge Ltd, because the delay in development was not attributed to the prior allottees, as per an official communique from the Ministry of Coal (MoC).

Rather, the IMG found that some delay was on the part of the government/its agencies. That is why the IMG had recommended invoking of nil amount at its 34^th meeting held on January 8, 2016. 

In case of the Ardhagram coal block, 50% BG was linked with milestones and 50% was production linked.

It was further found that there was no lag in production in that coal block.

The government, accepting the recommendations of the IMG, directed the coal controller to return the bank guarantee to the prior allottees and report to the ministry at the earliest.