Web Exclusive | March 2013
Ministry demands bank guarantee from Nalco
In line with the recommendation of an Inter Ministerial Group (IMG), National Aluminium Company (Nalco) was asked to provide bank guarantee equivalent to one year royalty.
Nalco was asked to submit bank guarantee by the coal ministry because the former was delaying the development of Utkal-E coal block, allotted to it in 2004. The ministry has sought a guarantee of Rs 17.92 crore.
The IMG did not consider it appropriate to recommend de-allocation of the coal block at this stage considering all factors, including substantial progress and investment.
IMG suggested that the allocatee be permitted to continue holding the block only on submission of bank guarantee equivalent to one year royalty.
If Nalco fails to submit the required amount within three months from February, then the block would be de-allocated, the ministry said.