Birla Corp to take legal recourse against mine deallocation

Birla Corporation, the flagship company of the M P Birla Group, is taking legal recourse against the Coal Ministry's decision to deallocate its coal block in Madhya Pradesh.

Birla Corporation's Bikram coal block, allotted in August 2008, was deallocated on grounds that the company failed to develop the mine for captive use in accordance with the prescribed milestones.

"The company is in the process of taking appropriate legal recourse against the deallocation of coal block and deduction of bank guarantee," Birla Corp said today in a filing to the BSE.

Birla said that though significant progress has been made in developing the coal block, there were delays or lapses in getting various clearances and approvals from government authorities, which were beyond the control of the company.

"Such facts have not been recognised by the Inter Ministerial Group (IMG) constituted by the government to review the progress of development of allocated coal blocks in arriving at the decision to deallocate the coal block," the company said.

"Order regarding deduction of 50 per cent of bank guarantee, which is linked to the milestones set for the development of the block, would be issued separately after receipt of calculation of amount from the office of Coal Controller," it added.

The decision to cancel the allotment of the mine was taken following recommendations of the IMG.

The government set up the IMG in 2012 to review the progress made in coal blocks allotted to firms for captive use and recommend action, including deallocation, for delays in development of mines.

The panel under the chairmanship of the Additional Secretary in the Coal Ministry includes members from the steel and power ministries.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • By standing up for its priorities at WTO, India has saved its farmers

    Narendra Modi has demonstrated his global priorities during his short stint in power by engaging Pakistan and China on the need to mend fences with In

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Dealing with a sin called insensitivity

Rage and the notion of being above the law — ...

Purnendu Ghosh

Avoiding utopian or dystopian extremes

One must know the known in order to know the ...

Bubbles Sabharwal

Your happiness doesn’t depend on your needs

They are two different words (and even worlds) altogether: having ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture