Coal news and updates

Companies that have lost permits to mine coal for captive consumption following a Supreme Court order last year are likely to suffer another blow. 

 

An inter-ministerial group has recommended invoking the bank guarantees given by those who have missed their coal-block development targets before September, when the court cancelled more than 200 mining permits. Annulment of the permits isn't a reason for missing the milestones the companies should in fact have met before the court order came, the group has held, according to the minutes of its meeting. 

 

The inter-ministerial group headed by AK Dubey, additional secretary at the coal ministry, has suggested invoking the guarantees on a case-by-case basis, after determining who was at fault for the delay — was it caused by laxity on part of the developer or regulatory hurdles. The panel has recommended issuing notices to the previous owners of 204 coal blocks, seeking explanation on why the bank guarantees should not be invoked. 

 

Based on the responses from the developers, the coal ministry will prepare a list indicating slippage in each milestone and reasons indicated by the developers. In fact, even before the SC order came in September, the government was planning to call upon the bank guarantees of several companies after cancelling allocations citing their failure to develop the mines. 

 

That move was challenged in the Delhi HC by more than 30 power and steel companies, including Jindal Steel & Power and Monnet Ispat & Energy. Since the SC had already cancelled the permits, the HC refused to provide any relief to the companies in October 30 order.

 

 

Source: http://economictimes.indiatimes.com/