November 19, 2012 / 16:53 IST
Acting on the recommendations of the Inter-Ministerial Group on coal blocks, the government has decided to deduct or forfeit bank guarantees to the tune of Rs 25.7 crore as the case may be, involving 11 firms for sitting idle on coal blocks allocated to them for captive use. The Coal Ministry has asked for forfeiture of Bank Guarantee (BG) of Rs 11.8 crore with regard to Gondhkari coal block jointly allotted to Maharashtra Seamless, Dhariwal Infrastructure and Kesoram Industries Ltd.
"Accordingly, Gondkhari coal block...is deallocated and bank guarantee amounting to Rs 11.87 crore furnished by the allocatee companies is forfeited and be encashed," the coal ministry said in a letter dated November 15 to Maharashtra Seamless, Dhariwal Infrastructure and Kesoram Industries. The companies whose BG has been ordered for deduction includes, Grasim Industries, Gujarat Ambuja Cements, Lafarge India, among others. The Inter-Ministerial Group (IMG) has concluded the scrutiny of coal blocks allotted to private firms and last month the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.The IMG has also recommended de-allocation of eight such blocks alloted to public sector firms after scrutiny of 19 cases. A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline. The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use. The CAG had estimated that undue benefits to the tune of Rs 1.86 lakh crore might have accrued to private firms on account of allocation of 57 mines to them without auction. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
