India, July 2 -- The Ministry of Coal has introduced a major reform by allowing the use of Insurance Surety Bonds (ISBs) as an alternative to Performance Bank Guarantees (PBGs) for coal blocks allocated under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957.
Under the Coal Blocks Allocation (Amendment) Rules, 2026, coal block allocatees can now choose between furnishing a Performance Bank Guarantee or an Insurance Surety Bond to meet their performance security requirements. Existing allocatees have also been permitted to replace their already submitted bank guarantees with Insurance Surety Bonds, subject to prescribed conditions.
The Ministry said the move is aimed at reducing the financial burden associated with conve...