The Ministry of Coal has issued a show cause notice to Reliance Power for deducting the bank guarantee due to delay in development of the Kerandari B & C coal blocks given to the company's erstwhile Tilaiya ultra mega power project. Reliance Power's bank guarantee for the Kerandari B & C coal blocks is worth ₹ 800 crores. The notice put on the Coal Ministry's website stated that Reliance Power and its subsidiary Jharkhand Integrated Power Ltd (JIPL) 'cannot be absolved of their responsibility of paying for damages for non-achievement of milestones set for the development of the Kerandari B & C coal blocks'. After terminating the power purchase agreement (PPA) for the Tilaiya UMPP, Reliance Power had written to the Coal Ministry for the release of the bank guarantee given for the Kerandari B & C coal block. The Coal Ministry has considered of the termination of the PPA of the Tilaiya UMPP as extraneous to the development of the coal blocks, the notice added. It has sought a reply from the company within 15 days on why the bank guarantee should not be deducted.