Birla Corporation, the flagshipcompany of the M P Birla Group, is taking legal recourseagainst the Coal Ministry's decision to deallocate its coalblock in Madhya Pradesh.
Birla Corporation's Bikram coal block, allotted in August2008, was deallocated on grounds that the company failed to develop the mine for captive use in accordance with theprescribed milestones.
"The company is in the process of taking appropriatelegal recourse against the deallocation of coal block anddeduction of bank guarantee," Birla Corp said today in a
filing to the BSE.Birla said that though significant progress has been madein developing the coal block, there were delays or lapses ingetting various clearances and approvals from governmentauthorities, which were beyond the control of the company.
"Such facts have not been recognised by the InterMinisterial Group (IMG) constituted by the government toreview the progress of development of allocated coal blocks inarriving at the decision to deallocate the coal block," thecompany said.
"Order regarding deduction of 50 percent of bankguarantee, which is linked to the milestones set for thedevelopment of the block, would be issued separately afterreceipt of calculation of amount from the office of CoalController," it added.The decision to cancel the allotment of the mine wastaken following recommendations of the IMG.
The government set up the IMG in 2012 to review theprogress made in coal blocks allotted to firms for captive useand recommend action, including deallocation, for delays indevelopment of mines.The panel under the chairmanship of the AdditionalSecretary in the Coal Ministry includes members from the steeland power ministries.
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Updated Date: Dec 21, 2014 01:38:16 IST