SHREE CEMENT LIMITED has informed the Exchange regarding 'intimation received from its bank today for encashment of Bank Guarantee of Rs. 3,63,51,707/- by Nominated Authority, Ministry of Coal, Govt. of India with respect to Datima Coal Mine.'.
SHREECEM · price
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Shree Cement's bank guarantee of Rs. 3,63,51,707 (about Rs. 3.64 crore) was encashed by the Nominated Authority, Ministry of Coal, on 1st July 2025. This penalty relates to the company's failure to get its mining plan approved for the Datima Coal Mine in Chhattisgarh by the deadline of 7th June 2025, as required under the Coal Mine Development & Production Agreement (CMPDA). The encashed amount equals 10% of the original bank guarantee submitted at the time of mine allotment. The company says it is working to secure the mining plan approval, environment clearance, and other milestones by the extended final deadline of 7th September 2027, after which it may be eligible to claim a refund of the deducted amount.
The company itself states the order has 'no major financial impact,' given the small size of the deduction (Rs. 3.64 crore) relative to Shree Cement's overall scale. The real risk to watch is whether the company can meet the remaining milestones by September 2027, as failure could lead to further encashments from the remaining bank guarantee.