Deallocation, bank guarantee deduction for coal blocks

The coal ministry has ordered deduction of bank guarantee in the case of DB Power while deallocating coal blocks of some firms. In the case of DB Power, the IMG (inter-ministerial group) has recommended the deduction of bank guarantee to  the extent of Rs 5.1 crore.

"The bank guarantee as calculated by the coal controller to the extent of Rs 5.104 crore be deducted and deposited with the government," the letter from the coal ministry said.

The bank guarantee deduction is for Durgapur-II/Sariya block.  The letters were issued on the back of the recommendations of the IMG headed by additional secretary (coal). Among companies affected by the deallocation were Grasim Industries, Gujarat Ambuja Cement, Lafarge, Electrotherm and Kesoram Industries.

Bhaskarpara coal block, allocated to Electrotherm India and Grasim Industries, has been recommended for deallocation as well as a bank guarantee deduction of Rs 1.65 crore.

Dahegaon and Makardhokra-IV blocks, allocated to IST Steel & Power, Gujarat Ambuja Cement and Lafarge India, have been recommended for both deallocation as well as bank guarantee deduction of Rs 2.5 crore.