The Coal Ministry has permitted coal block allocatees under the Mines and Minerals (Development and Regulation) Act (MMDR Act) to use insurance surety bonds as a substitute for performance bank guarantees. The change applies to the requirement for guarantees that allocatees typically provide to fulfil obligations linked to coal blocks. The Ministry says the move is intended to ease the financial burden associated with traditional bank guarantees, which can require bank support and increase financing constraints for businesses. Business Standard reports that the policy allows allocatees to use insurance surety bonds instead of performance bank guarantees, framing it as a measure to improve ease of doing business and reduce difficulties in raising funds. The Hindu similarly notes the rationale as reducing the financial burden arising from conventional bank guarantees. Across the reports, the key common element is the ministry’s approval of insurance surety bonds as a replacement instrument for performance bank guarantees for MMDR Act coal block allocatees.