Show-cause notices to Essar Power and Monnet Ispat over unpaid dues

A high-ranked government official has said that the government is planning to issue notices to two companies, one being Essar Power for not paying its dues to Jharkhand government over the Tokisud North coal block; the other enterprise that would receive the notice is Monnet Ispat & Energy, since it got late in paying upfront fees on a mine that it had won in an auction.

Both companies will get a show-cause notice, asking them why their proportionate bank guarantees should not be forfeited by the government.

Talking of Essar Power, mining lease for Tokisud coal block, the most expensive of those bids, was executed in its name but it is yet to pay the dues to Jharkhand. Earlier, the Tokisud coal block belonged to GVK Power, but the Supreme Court cancelled its permit.

A spokesperson from Essar Power MP said that the initial amount of Rs 147 crore has been paid to the coal ministry while signing the agreement in March 2015, and two more instalments of upfront payments worth Rs 53 crore have also been paid. Once the company receives clarifications from the government, the third and final instalment of Rs 18 crore will be paid too.

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