The letter also said that the bank guarantee (BG) to the extent of Rs. 1.59 crore (ie 50% of the BG related to development of the coal block) be forfeited.
The Coal Ministry in another letter to Odisha Mining Corporation said, "Utkal-D coal block allocated to Odisha Mining Corporation is deallocated. The company shall not be eligible for allocation of coal block in lieu of the deallocated coal block."
The IMG had already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and the government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees. A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline. The government had formed the IMG in July to review progress of coal blocks allocated to firms for captive use.