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Sunday, 04 October 09
GOVT THREATENS TO CANCEL COAL BLOCK ALLOTTED TO BINANI CEMENT


Economic Times reported that, The government has threatened to cancel a coal block allocated for captive use to Binani Cement saying the company seems to be a non-serious player.

"Your company has not only violated the government orders but also seems to be not interested to develop the block as per the milestone chart and terms and conditions of the allocation... The progress is not satisfactory and your company seems to be a non-serious player," the coal ministry said in a showcause notice issued to the company.

Binani Cement said it has already sought time from the government for assessing the viability and feasibility of the block as the decision to acquire the block rests on the report indicating the quality of coal.

The coal ministry served notice on September 29 to the company and sought its reply within 15 days, seeking reasons for the delay in developing the mines allotted for captive use, failing which the process to de-allocate the block would start.

The company has also failed to submit a bank guarantee amount of Rs 5.86 crore to the ministry in the stipulated time frame, it said.

Also, it added that the company has not even applied for any mining related licence with the state government till now.

Earlier, the government had issued notices to ArcelorMittal and MMTC warning cancellation of blocks alloted to them for failing to develop the mines.
Source: Economic Times



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