Section 8(8) in Coal Blocks Allocation Rules, 2017
(8)The State Government concerned may, upon grant of mining lease, require the successful allocatee to provide a performance bank guarantee in its favour for ensuring the production of coal as per the mining plan:Provided that in case the allotment is made under sub-rule (10) of rule 6 to a Government company or corporation for utilisation of coal in the linked power project to be awarded on the basis of competitive bid for tariff (including Ultra Mega Power Project), the performance bank guarantee shall be provided by the operating special purpose vehicle on behalf of the successful allocatee after award of power project on the basis of competitive bidding in accordance with guidelines issued by the Central Government in the Ministry of Power.
