1.Dry roast urad dal until it becomes light brown and you start smelling roasted dal. Then dry roast red chillies. Grind this in mixie preferably, as blender does not grind it as good as mixie.
2.Pour a teaspoon of oil in a frying pan and saute onion. When onion fries well, add chopped bell pepper and saute until the edges of capsicum becomes little black. This gives a grilled texture. Now add this to powdered ural dal & red chilly mix, add coriander, dalia, tamarind concentrate, hing, coconut, little water and grind thoroughly. Add required salt in the end.
* Green capsicum chutney is very flavorful. Chutney made out of red bell pepper is very colorful and gives a good presentation. I have made chutney with yellow bell pepper though.