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The Union Coal Ministry has asked Odisha Mining Corporation (OMC) and Andhra Pradesh Mineral Development Corporation (APMDC), two state-run mining companies, to submit Rs 243.60 crore as bank guarantee for delays in development of Nuagaon Telisahi coal block.
The Inter Ministerial Group (IMG), set up to monitor progress of allocated coal reserves found that the coal block allotted to these state PSUs is already explored and the allocatees are in a position to take further steps for development of the block.
"The allocatees may be permitted to continue holding the block only on submission of one year bank guarantee equivalent to one year royalty”, the IMG had recommended.
The recommendation of the IMG, which was accepted by the coal ministry, said that if the companies fail to submit the money, then the block allocation may be cancelled.
"OMC and APDMC are directed to furnish a bank guarantee of Rs 243.60 crore to be submitted to the Coal Controllers' Organisation within a period of three months, failing which the block may be de-allocated”, said a letter issued from Coal Ministry on April 9.
OMC has already lost two coal blocks, Mandakini-B and Utkal D, along with other state PSUs for substantial delay in development of the property.
