BHOPAL: Sand mines in Hoshangabad district have become a headache for the state government.
Power Mech Projects Company Ltd that took the mines through online auction has not yet deposited the security money.
To take over the mines, the company has made a bid of Rs 214 crore.
Now, the firm has to deposit Rs 82 crore as security money, but it is turning away from doing that.
The state government is earning so much revenue for the first time from the mines of Hoshangabad, so the government has not yet cancelled the allotment of mines.
The mining department has told the Power Make Company that it may take as much time as it wants to deposit the security.
Allotment of mines will be a major problem in the district. Three mines are with the district Panchayats and the rest are with the contractors. The contracts are valid till March.
The environment clearance for the mines will be over by March, and after that, fresh approval has to be taken.
Against this backdrop, problems for the company which has come all the way from Telangana have multiplied.
It has already deposited Rs 100 crore as earnest money and Rs 25 crore as offset price.
It may have to part with Rs 25 crore if it does not deposit security money.
Another contractor KP Singh Buadahria who has taken over the mines in Mandla has not deposited the security money.
Nevertheless, the mining department has not yet cancelled the contract.
Principal Secretary of mining department, Neeraj Mandloi, said Power Make Company did not deposit the security money in Hoshangabad.
According to Mandloi, the company has been given more time to deposit it. He said the allotment of mines in Ashoknagar was cancelled.
