SECL cancels LoA for Aditya Birla's power plant

SECL has served a notice to Aditya Birla's Birla Cellulosic unit for the cancellation of the letter of assurance and encashment of commitment guarantee for the latter's 25 MW captive power plant at Kharach, Gujarat.

The said notice has been served on the grounds of non-fulfillment of the time bound milestones of the LoA.
As per South Eastern Coalfields Limited, the capacity mentioned in the board resolution is at a variance with the LoA capacity.

Further, the coal company has alleged that the firm has not obtained the permission of the government for the said TPP, which, as per the claim, is mandatory.

In addition to this, SECL has also charged Birla for having irregularities in terms of environment clearance and a default in furnishing additional commitment guarantee.

In light of this, the LoA has been cancelled, with Rs 1,67,57,000 now forfeited.