New Delhi: The government has decided to impose penalty on Abhijeet Group firm Corporate Ispat & Alloys Ltd (CIAL) for not developing a coal mine in Jharkhand allocated to it within the stipulated time-frame.
The order of the Coal Ministry, to deduct the Bank Guarantee (BG) of Rs 10 crore of the company, will take effect one week from December 5, when it was issued.
The ministry said in a letter to CIAL: "It has been decided to deduct the proportionate Bank Guarantee to the extent of Rs 10.41 crore."
Chitarpur coal block in Jharkhand was allocated in September, 2005 to CIAL to meet its coal requirement of 0.75 capacity sponge iron production at Hazaribagh in Jharkhand.
The decision for BG deduction was taken after the recommendation made by the Inter-Ministerial Group (IMG) on the same.
The IMG was formed in June under the Chairmanship of Additional Secretary in the Coal Ministry to review the progress of development of allocated coal blocks and associated end-use projects, and recommend action including deallocation in case of delays.
The IMG consists of members from the ministries like Power, Steel and Commerce, among others.
A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline.


Latest News from India News Desk