The Ministry of Coal has decided to deduct the bank guarantee given to Chaman Metallics Ltd by ₹14.02 lakh due to delays in the development of the Kosar Dongergaon coal block (Maharashtra) allocated to the company in 2007.
The Ministry said the decision was taken subsequent to the recommendations of an inter-ministerial group (IMG) on coal blocks.
According to a letter sent to the company, the decision was taken since “the allocatee company has been given a number of opportunities to develop the coal block and the associated end project and the company has failed to develop the same as per the milestones prescribed without any valid reasons for the delay.”