PANJIM: The State government has decided to approach Centre seeking relaxation for payment of Rs 195 crore as performance guarantee from the State exchequers, for coal block that Goa Industrial Development Corporation (GIDC) has been allocated at Singruli in Madhya Pradesh.
The State, would instead, ask the private operator, who will be selected to run the coal block, to generate the funds.The decision came after State Finance Department denied GIDC the proposal seeking Rs 195 crore from the government to pay the performance guarantee. The department directed GIDC to look for avenues to generate the funds.
Addressing media persons on Friday, Industries Minister Vishwajit Rane said that State will seek permission from the Centre to allow the private party to generate funds to pay the performance guarantee, instead of government paying it.
“The State is in no position to pay this amount. It will have to be borne by the private player, who will be selected to run the coal block,” Rane said adding that the decision is been taking in consultation with the Finance Department.
The Dongri Tal II coal block at Singruli in Madhya Pradesh has been allocated to Goa as part of the fifth tranche of allotment by the Union Coal Ministry. The Centre had asked State that it will accept upfront payments in three installments from the successful bidders, along with the performance guarantee, from the State, prior to the formal signing of the coal mine development and production agreement.
Further, Rane said that GIDC has decided to rope in a consultant to guide the corporation as how to go ahead on coal block utilisation once the agreement is signed.
“Consultant will help us to appoint an agency in transparent manner. It will also guide us on how to operate the coal block. Directions have been issued to fast-track the process of appointment of the consultant,” he said.
