Tata Power and Hindalco’s bank guarantee for a coal block in Jharkhand is likely to be forfeited as per the recommendation made by inter-ministerial group (IMG). In August 2007, the government had allocated Tubed block in Jharkhand to Tata Power and Hindalco for power generation but has seen delays in development of the mines.
The block found a mention in the CAG report, which has been the trigger for government action. The block has an extractable reserve of 130 million tones. Prior to this, the government has accepted the panel's recommendation for deduction of bank guarantee in case of Marki Mangli in Maharashtra allotted to Shri Virangana Steel in 2005, Lohari block in Jharkhand given to Usha Martin in 2005 and Nerad Malegaon in Maharashtra that was allotted to Gupta Metaliks & Power in 2006.
