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Saturday , November 24 , 2012
Since 1st March, 1999
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Jindals lose Bengal coal block

New Delhi, Nov. 23 (PTI): The coal ministry has decided to deallocate four coal blocks given to 15 firms, including JSW Steel and Bhushan Steel & Strips, and ask Monnet Ispat to deposit a bank guarantee of Rs 62 crore.

“It has been decided to deallocate Gourangdih ABC coal block in the state of Bengal from Himachal EMTA Power Ltd and JSW Steel Ltd. In addition, it has been decided to forfeit 50 per cent of the bank guarantee related to the development of the coal block, according to the recommendation of the inter-ministerial group. The bank guarantee to the extent of Rs 6.67 crore be deducted,” the coal ministry said in a letter dated November 23.

The ministry also decided to deallocate the New Patrapara coal block in Odisha that was allocated to eight firms, including Bhushan Steel & Strips and Adhunik Metaliks.

“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 Monnet Ispat, said, “The bank guarantee as calculated by Coal Controller to the extent of Rs 62.832 crore equal to three years’ royalty is to be deposited by the allottee firm within one month from the date of letter, failing which the block may be deallocated.”

The Lalgarh (North) coal block in Jharkhand allocated to Domco Smokeless Fuel (P) Ltd, Ranchi, also faces the axe.

The ministry will move to take away the North Dhadu block in Jharkhand, jointly allocated to four firms, including Adhunik Alloys & Power and Electrosteel Castings.