Birla Corporation loses its Coal block owing to failure in developing mine within stipulated period. 

The Ministry of Coal informed that it has de-allocated Bikram Coal Block allocated to Birla Corporation on a letter dated 07 Jan, 2014. The Coal block has not been developed as per the prescribed milestones which led to de-allocation.

Birla Corporation reported that significant progress has been made in the development of the Coal block and delays have been entirely owing to delays/lapses in receipt of various clearances and approvals from the government authorities, which were beyond the control of the Company.

Such facts have not been recognized by Inter Ministerial Group (IMG) constituted by the Government to review the progress of development of allocated Coal Blocks in arriving to the decision of Coal block de-allocation.

Order regarding deduction of 50% Bank Guarantee, which is linked to the milestones set for the Coal block development would be issued separately after receipt of amount calculated from the office of Coal Controller.

The Company is in the process of taking appropriate legal recourse against the de-allocation of Coal block and deduction of Bank Guarantee.