The Ministry of Coal (MOC) has de-allocated Bikram Coal Block allocated to Birla Corporation Ltd vide its letter dated January 07, 2014 on the grounds that the coal block has not been developed as per the milestones prescribed in the allocation letter.
Though significant progress has been made in the development of the coal block the delays have been entirely due 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 recognised by Inter Ministerial Group (IMG) constituted by the government to review the progress of development of allocated Coal Blocks in arriving at the decision to de-allocate the coal block.
Order regarding deduction of 50% 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.
The Company is in the process of taking appropriate legal recourse against the de-allocation of coal block and deduction of Bank Guarantee.
Shares of Birla Corporation Ltd was last trading in BSE at Rs.252.90, down by Rs.9.05 or 3.45%. The stock hit an intraday high of Rs.263.70 and intraday low of Rs.252.
The total traded quantity was 2695 shares as compared to 2 week average of 1798 shares.
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