NEW DELHI, Feb 23: The Coal Ministry has asked Steel Authority of India Ltd to deposit a bank guarantee of Rs 57 lakh for delaying development of a mine in Jharkhand allocated to the company for captive use.
This follows recommendations an inter-ministerial group (IMG) on coal blocks.
“Taking into account the facts brought before it, including the fact that EC (environment clearance) has been granted and mining lease is pending for opening of mine (Sitanala coking coal block) as well as the fact that as against the scheduled date of production of April 11, 2011, the mine is not yet operational, IMG recommends deduction and encashment of proportionate bank guarantee (BG),” the Coal Ministry said in a letter to SAIL chief.
The recommendation of IMG has been considered and accepted by the Government, the letter said.
“Accordingly, the bank guarantee to the extent of Rs 0.57 crore (Rs 57 lakh only) be involved and deposited with the Government,” it said.
The coal mine in Jharkhand having a geological reserves of 108.8 million tonnes (MT) was allocated to the steel PSU in April, 2007.
The IMG further noted that though environment clearance was granted in 201O and no forest clearance was involved, the delay appears to have been caused due to the fact that it is a grassy mine and degasification plans were to be devised first before mining, the letter said.
“The allocatee has assured that the production from the block will start from April, 2015,” it added.
The IMG, under the Chairmanship of Additional Secretary, was set up to review the development of the coal blocks and the recommend action, including deallocation.
Over the last few days, the Government had deallocated around 30 coal blocks of firms like Tata Steel, Jindal Steel and Power Ltd and Essar Power. (AGENCIES)
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