Section 8(4) in Coal Blocks Allocation Rules, 2017
(4)The successful allocatee shall be required to provide a performance bank guarantee in favour of the Central Government for such amount and period as may be specified by the Central Government and such performance bank guarantee shall, inter alia, provide for the following, namely:-(i)it shall be unconditional and irrevocable;(ii)it shall be linked with the milestones for the development of the coal block as may be specified by the Central Government; and(iii)upon invocation of the performance bank guarantee, the payment should be made immediately without any demur, reservation, caveat, protest or recourse: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.
