Coal Ministry permits use of insurance surety bonds as replacement for bank guarantees

The Coal Ministry has permitted coal block allottees to use Insurance Surety Bonds (ISBs) as a replacement for Performance Bank Guarantees (PBGs) to fulfill their performance surety obligations. This measure aims to alleviate the financial burden on allottees, allowing for more efficient capital deployment in mine development and operations, while ensuring government interests remain protected. The directive also applies retrospectively to existing allottees.