The coal ministry has decided that the first revision in Performance Bank Guarantee (PBG) would be done upon grant of mine opening permission for respective coal mines, a move that is expected to reduce financial burden on the bidders.
A bank guarantee is a kind of guarantee from a lending organisation.
As per the provisions of the tender document, PBG to be submitted for each successfully auctioned coal mine is to be revised annually based on the National Coal Index (NCI) for the month of April in the beginning of the year, the coal ministry said in a statement.
