Ministry of Coal of Republic of India : Notice of termination under clause 24.3.2 of the Allotment Agreement.

Email/Website

F.No. 103/2/2016/NA GOVERNMENT OF INDIA MINISTRY OF COAL

OFFICE OF NOMINATED AUTHORITY

*****

131Ground Floor, World Trade Center, Bahar Road

New Delhi, dated: 12.01.2017

To

Premchand Yashwantrao Tembhare General Manager (Operations)

M/s Maharashtra State Mining Corporation Limited Khanikarm Bhawan, Plot No. 7, Ajni Chowk

Wardha Road, Nagpur - 440015

Subject: Notice of termination under clause 24.3.2 of the Allotment Agreement. Sir,

Pursuant to order no. 13016/35/2015-CA-I II dated August 17, 2016 issued by Government of

India under Rule 11 (9) of the Coal Mines (Special Provisions) Rules, 2014, M/s Maharashtra State Mining Corporation Limited (MSMC) was declared as the Successful Allottee of Dahegaon I Makardhokra - IV Coal Mine vide Nominated Authority's order no. 103/5/2016/NA dated 17.08.2016.

1. Accordingly, the Nominated Authority and the Successful Allottee entered into an Allotment Agreement on 24.08.2016 ("Agreement") with respect to matters related to allocation of the Coal Mine, including without limitation, the development of the Coal Mine and production and sale of coal from the Coal Mine.

2. As per clause 3.2 of the Agreement, the Successful Allottee was required to provide a completion notice to the Nominated Authority within 33 days intimating that it has complied with the required conditions for Allotment. In the instant case, the period of 33 days had expired on 26.09.2016.

3. Further, M/s MSMC vide email dated 02.09.2016 had requested for extension of two months period for furnishing of performance security, payment of fixed amount and first instalment of upfront amount which are conditions for Allotment. The above request for extension of the Successful allottee was examined and accordingly, extension of time period for completion of allotment conditions in respect of Dahegaon/Makardhokra IV coal mine was granted till 31.12.2016.

4. It is noted that the issuance of the Allotment Order in favour of the Successful Allottee is subject to satisfaction of the allotment conditions and the Successful allottee has not fulfilled the allotment

   conditions and has not submitted the Completion Notice as prescribed in clause 3.2 of the Allotment Agreement.

5. In view of the above circumstances, it is clear that despite the opportunities given to it, the

   • Successful Allottee is unwilling to submit the completion notice. As per Clause 24.3.1(b) of Allotment Agreement, failure of the Successful Allottee to complete the allotment conditions within the time specified in Clause 3.2 constitutes a Termination Event.

6. Accordingly, this notice is issued to the Successful Allottee under clause 24.3.2 of the Allotment Agreement. On completion of notice period of 15 business days on 07.02.2017, the Allotment Agreement shall stand terminated and the Successful Allottee shall not be entitled to any benefits under the Allotment Agreement.

Copy to:

1. The Chief Secretary, Government of Maharashtra.

2. US (CA-Ill), Ministry of Coal,Government of India.

Yours faithfully,

u

(Vivek Bharadwaj)

Jt. Secretary to the G.ovt. of India &

Nominated Authority