NEW DELHI, April 12
THE Ministry of Communications has encashed the Rs. 50-crore earnest money bank guarantee (EMBG) of Hughes Ispat Ltd (HIL), amounting to cancellation of the letter of intent (LI) for the Karnataka basic services circle.
Sources said that the company had not yet contested the encashment. This is being perceived by the Ministry as an indication of the company's lack of interest in pursuing the Karnataka project.
An EMBG, which is submitted along with the bid, is encashed if the bidder fails to sign the licence agreement, submit financial and performance bank guarantees, or if the company fails to comply with the …