The Coal Ministry has decided to implement the findings of the Inter-Ministerial Group (IMG) and de-allocate four coal blocks given to 15 companies including JSW Steel and Bhushan Steel & Strips. It has also asked Monnet Ispat to deposit a bank guarantee of Rs.62 crore.
In a communication issued here on Friday, the Ministry said it had been decided to de-allocate Gourangdih ABC coal block in West Bengal from Himachal EMTA Power Ltd. and JSW Steel Ltd.
It has also been decided to forfeit 50 per cent of bank guarantee worth Rs. 6.67 crore relating to the development of coal block as per the recommendation of the IMG. On the New Patrapara coal block, the Ministry said it had decided to de-allocate it. The mine was jointly allocated to eight firms, including Bhushan Steel & Strips and Adhunik Metaliks. In another communication pertaining to Monnet Ispat, it said the bank guarantee as calculated by Coal Controller of India (CCI) to the extent of Rs. 62.832 crore equal to three years royalty would have to be deposited by the allocatee company by the end of next month failing which the block might be de-allocated. In case of Domco Smokeless Fuels, it said it had decided to de-allocate the Lalgarh (North) coal block in Jharkhand, which was originally allocated to Domco. With regard to the North Dhadu coal block jointly allocated to four firms, including Adhunik Alloys & Power and Electrosteel Castings, the Ministry said it would also be de-allocated.
It also recommended forfeiting bank guarantee to the tune of Rs.56.03 crore.
Coal Minister has asked Monnet Ispat to deposit a bank guarantee of Rs.62 crore