"In pursuance of the recommendations of IMG (Inter- Ministerial Group) it has been decided to deduct the Bank Guarantee (BG) furnished by the allocatee companies.
"The BG to the extent of Rs 32.50 crore be deducted and deposited with the government," the coal ministry has said in a letter to Tata Sponge, Scraw Industries and SPS Sponge Iron allocated Radhikapur (East) coal block.
Radhikapur (East) coal block was alloted to the three firms with Tata Sponge as leader to meet the coal requirement of for their sponge iron production and captive power generation, the ministry said.
In another letter to Nilachal Iron & Power and Bajrang Ispat, the ministry said, "Accordingly it has been decided to deduct the proportionate BG furnished by the allocatee companies in respect of Dumri coal block in respect of shortfall in production. The BG to the extent of Rs 6.50 crore be deducted."
Dumri coal block was alloted to Nilachal Iron & Power and Bajrang Ispat to meet their coal requirement of 47 million tonnes (MT) and 22 MT.
The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use. A total of 58 mines were issued show-cause notices for failing to develop blocks within stipulated timeline.
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