CoalMin directs OMC, APMDC to give Rs 244 cr as bank guarantee

The decision was taken following the recommendations of an Inter-Ministerial Group on coal blocks

The Coal Ministry has directed Orissa Mining Corp and Andhra Pradesh Mineral Development Corp to furnish around Rs 244 crore as bank guarantee for not developing a coal block jointly allocated to them, failing which the mine may be taken back.

"Orissa Mining Corporation Ltd (OMC) and AP Mineral Development Corporation (APMDC) are directed to furnish a bank guarantee (BG) of Rs 243.6 crore...Failing which the coal block may be deallocated," the Coal Ministry said in a letter dated April 9 to both the firms.

The decision was taken following the recommendations of an Inter-Ministerial Group (IMG) on coal blocks.

"The IMG...Recommended that the allocatee may be permitted to continue holding the block only on submission of BG equivalent to one year royalty...IMG further recommends that the BG may be submitted...Failing which the block may be deallocated."

Nuagaon Telishai coal block in Orissa was jointly allocated to both the firms in 2006.

The IMG, under the Chairmanship of Additional Secretary, coal was set up to review the progress of development of allocated coal blocks and associated end use plants and to recommend action, including de-allocation, if required.