State-run power generator NTPC has been asked by coal ministry to immediately furnish more than Rs 200 crore as bank guarantee or risk de-allocation of its coal mine in Chattisgarh.
Coal Controller's office in Kolkata has told the state-owned power producing firm to immediately deposit Rs 233 crore if it wants to retain the Talaipalli coal block allocated to it.
Failure to pay the amount by NTPC would result in the block being taken back as there has been considerable delay in developing the block by the company.
This is one of the steepest demand for bank guarantee raised by the coal ministry this year for delaying mine development.
"The allocatee company is directed to submit the bank guarantee of Rs 232.84 crore to Coal Controller's organisation immediately failing which appropriate action would be taken including de-allocation of the block," the letter sent to NTPC's chairman cum managing director Arup Roy Chaudhury said.
Talaipalli block was allocated to NTPC in 2006 to meet requirement of their 4000MW Lara integrated power project.
In a review meeting of 2012, the ministry found that the progress of the development of the block was not satisfactory and a caution letter was issued asking NTPC to expedite the work.
Meanwhile, in that year the Inter Ministerial Group was formed and in a meeting in 2013 it was found that "no significant progress" was made by NTPC based on a report filed by Coal Controller's office.
Following this a show-cause notice was sent to which NTPC replied and argued that the delay has been on account of land transfer and approval of the rehabilitation package by the Chattisgarh government.
Till June 2013, NTPC has invested Rs 1,139 core in the project.
"Taking into account the facts before it, and the fact the environment and forest clearance (stage1) has been granted and mine opening is pending for transfer of land by the state government as well as the fact that against scheduled date of production of 25.2.2011, mine couldn't be opened so far, IMG recommends imposition of bank guarantee," the letter said.
Bank guarantees are imposed as a warning if the coal ministry finds that there has been delays in achieving mile stones in starting mining operations, and part or whole of it is encashed as a final penalty followed by deallocation if further delays are caused due to factors which are in the control of company.
Bank guarantees asked to be paid this year ranged from a low Rs Rs 55 lakh demanded from Madhya Pradesh State Mining Corp for their Marki Barka block to Rs 27.16 crore asked from GVK Power (Goindwalsahib) Ltd to Rs 138.6 crore raised against NTPC for their Pakri Barwadih coal.
But the highest amount asked from any coal mine allocatee as bank guarantee is Tenughat Vidyut Nigam, which has been asked to cough up Rs 242 crore for their Rajbar block in Jharkhand.
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