CoalMin to deduct bank guarantee for delay in mine devt

To fast-track the development of captive coal blocks, the government has finalised apolicy for deduction of bank guarantees of mine holders if they do not startproduction from allotted mines within the stipulated time frame."The Coal Ministry has framed guidelines on bankguarantee deduction. To begin with, the ministry will deduct the bank guarantee of 18 firms which have delayed the production from the captive mines allocated to them," a source close to the development told PTI. The policy was finalised in the last meeting of an inter-ministerial group held recently, the source added. The firm allocated mine for captive use is required to submit a bank guarantee equivalent to one year's royalty amount payable based on the final peak capacity of the mine and the weighted average royalty. The development follows the Prime Minister's Office asking the Coal Ministry to fast-track the process of taking back captive coal blocks which have not been developed in stipulated time. In May