Goa Industrial Development Corporation (GIDC) has asked the Union coal ministry for additional time to appoint a mine developer-cum-operator and pay the performance guarantee for the Dongri Tal II coal block at Singrauli in Madhya Pradesh.
GIDC has also informed the Centre that the state government has appointed Nagpur-based firm, a’XYKno Capital Services Private Limited as the consultant and work has begun on the viability report, market study and Request for Proposal (RFP). This information was also presented to GIDC’s board members on Thursday at the 370th board meeting.
“The coal block RFP has to be floated now. The consultant will give us the draft RFP within a week and once approved, we will issue the RFP,” said GIDC managing director Derrick P Neto. “GIDC has asked for yet another extension and subject to the extension we can go ahead.”
The Dongri Tal II coal block at Singrauli in Madhya Pradesh was allocated to Goa as part of the fifth tranche of the allotment by the coal ministry and the state was supposed to ink the agreement by October 30, 2019. However, due to paucity of funds, GIDC could not pay the instalments upfront and decided to instead select the MDO who would pay the performance and bank guarantee for the coal block on behalf of the state.
Goa’s finance department refused to grant Rs 196 crore to pay the performance guarantee for a coal block in November 2019.
Due to the delay in completing the formalities, the Centre has granted multiple extensions to GIDC, the latest deadline being November 27. GIDC is counting on another extension to ensure that it does not lose out on the coal block. “We have shown the progress made so the extension should come,” said Neto.
The GIDC board was informed about the appointment of a’XYKno Capital Services for a consultancy fee of Rs 10 lakh.
Since this is the first meeting since the GIDC board was reconstituted, members were confirmed for GIDC’s screening committee and planning and development committee, which grants approvals under Section 37B of the Goa Industrial Development Corporation Act.
Meanwhile, the bids for appointment of a consultant for the SEZ land will be opened on November 30, GIDC sources said.
