Coal blocks: Decision on bank guarantees as per states' views

NEW DELHI: A decision on bank guarantees provided by the previous allottees for 130 coal block would be taken after considering the views expressed by the state governments in this regard to an inter-ministerial panel.

The Coal Controller's Organisation will calculate the amount to be deducted from the bank guarantees, as per a decision taken by this panel.

The deadline for submission of comments by the state governments in this regard ended today.

The CCO (Coal Controller's Organisation) will also take into account the comments from the Central Mine Planning & Design Institute Ltd, as per minutes of the meeting of the Inter-Ministerial Group held on April 16.

In the case of a state government not making a submission, the decision would be taken on the basis of the reply submitted by the concerned prior allottee.

The Government had in January issued fresh show cause notices to prior allottees of coal blocks, including JSPL, JSW and Tata Steel, seeking reasons for delay in mine development and warned of deducting their bank guarantees if they failed to furnish replies.

"You are hereby called upon to show cause to why the delay in the development of the coal blocks should not be held as violation of the terms and conditions of the allocation letter," the Coal Ministry had written to the prior allottees of around 130 coal blocks.

The IMG meeting, chaired by Coal Ministry's Additional Secretary A K Dubey, was also convened in view of court cases filed by various prior allottees against the show cause notices issued to them.