MoC issues notices to Essar Power and GMR Energy

The Ministry of Coal has issued notices to Essar Power Limited and GMR Energy Limited to confiscate their bank guarantees worth up to Rs 9 billion following a judgement by the Delhi High Court that rejected the companies’ petition to surrender their coal blocks. The two companies had submitted these bank guarantees for the coal blocks they won in an auction in 2015-16. After a CERC directive in 2015 that disallowed any pass through of the fixed cost on the final power tariff by the power producers, who won coal blocks, both the companies approached the court in 2017.

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