Ministry of Coal Introduces Insurance Surety Bonds for Coal Blocks

The Ministry of Coal has announced a significant reform to improve financial flexibility for coal block allocates. The introduction of Insurance Surety Bonds as an alternative to Performance Bank Guarantees under the Coal Blocks Allocation (Amendment) Rules, 2026, aims to ease financial constraints and promote efficient capital deployment for coal mining operations. Initially applicable to blocks under the Mines and Minerals (Development and Regulation) Act, 1957, plans are underway to extend this provision to those under the Coal Mines (Special Provisions) Act, 2015, reflecting the Ministry's focus on encouraging investment and creating a business-friendly environment.

Source: Original Link

Read more