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Coal ministry asks Nalco to submit Rs 18 cr bank guarantee

Source : BUSINESS_STANDARD
Last Updated: Sat, Feb 02, 2013 04:22 hrs
Workers ride on an motor rickshaw through an aluminium ingots depot in Wuxi

The Coal ministry has directed National Aluminium Company (Nalco) to submit a bank guarantee of Rs 17.92 crore due to delays in achieving the milestones to develop Utkal-E coal block, allotted to the company in 2004.

"Taking into account all factors, including substantial progress and investment, the IMG did not consider it appropriate to recommend de-allocation of the coal block at this stage. However, in view of the slippage in milestones, IMG recommends that the allocatee may be permitted to continue holding the block only on submission of bank guarantee equivalent to one year royalty," the ministry said, quoting from the recommendations of Inter Ministerial Group.

If Nalco fails to submit the required amount within three months from February, then the block would be de-allocated, it added.


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