New Delhi: The government has decided to deallocate a coal block allocated to Bihar Sponge Iron and 0deduct bank guarantee of Rs 26.5 crore in case of Jindal Steel & Power Ltd (JSPL) and Jayaswal Neco. (Agencies)
"As the company has been given a number of opportunities to develop the coal block and...has failed to develop the same ...it has been decided to de-allocate the Macherkunda coal block in the state of Jharkhand from Bihar Sponge Iron Ltd," Coal Ministry said in a letter dated November 20 to the company.
"In addition, it is further decided to return the full bank guarantee amount without any deduction," the letter said. The Coal Ministry in another letter to JSPL dated November 20 said that it has decided to deduct bank guarantee amounting to Rs 16.5 crore with regard to Jitpur coal block in Jharkhand allotted to the company.
"It has been decided to deduct the proportionate bank guarantee for shortfall in production furnished by the allotees. The bank guarantee to the extent of Rs 16.59 crore be deducted," the coal ministry said in a letter to JSPL.
In another letter to Jayaswal Neco, the ministry said, "It has been decided to deduct proportionate Bank Guarantee furnished by the allotees. The Bank Guarantee to the extent of Rs 10 crore be deducted."
The Inter-Ministerial Group (IMG) has completed the exercise of scrutiny of blocks alloted to both private and public sector firms, which were issued show cause notices for failing to develop mines within stipulated timeframe.
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 accrue to private firms on account of allocation of 57 mines to them without auction.
New Delhi: The government has decided to deallocate a coal block allocated to Bihar Sponge Iron and 0deduct bank guarantee of Rs 26.5 crore in case of Jindal Steel & Power Ltd (JSPL) and Jayaswal Neco.