NEW DELHI | Apr 22, 2015: The coal ministry has prescribed tough timelines for the development of the recently auctioned coal mines. Overshooting the deadline may lead to phased deduction of bank guarantee.
Companies which bagged coal blocks during the first and second rounds of auction are required to apply for statutory permissions for transfer of the blocks in their name within a month, while the transfer formalities are required to be completed in three months.
The ministry has prescribed eight milestones, with different weight, for deducting bank guarantee.
If it doesn't file necessary transfer applications after one month of bagging the block, 12% of the money guaranteed will be deducted.
Milestones and bank guarantee deduction:
(Source: http://economictimes.indiatimes.com/)