Coalgate: Government cancels allocation of 4 captive coal blocks
13 Sep 2012
The coal ministry has decided to cancel the allocation of four captive mines and deduct the bank guarantees of three mines and deposit the bank guarantee of another one block. The action was taken on the recommendations of the inter-ministerial committee (IMG) that reviewed the allocation of 58 coal blocks to various entities.
The four blocks that the ministry de-allocated include the Bramdih coal block allocated in 1999 to Castron Minning Ltd, two blocks of Chinora & Warora allocated in 2003 to Field Mining & Ispat Ltd and the Lalgarh North allocated in 2005 to Domco Smokeless Fuels Pvt Ltd.
Monnet Ispat & Energy Ltd has been asked to deposit its bank guarantee of around Rs90 crore pertaining to coal block Utkal B2 because of slippages in development phases.
If the company fails to start production by March 2013 the bank guarantee would be forfeited.
Also, the government will deduct a part of the bank guarantee deposited by Veeranga Steel Ltd for three blocks -- Marki Mangli - II, III and IV.
The IMG has recommended punitive action against eight companies that were allocated coal blocks but have failed to develop them.
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