- All coal blocks de-allocated except four owned by the government
- JSPL & Hindalco – the major losers
- 46 operating blocks given a time period of 6 months to wind up operations
- Companies have been asked to pay a fine of INR 295/MT for coal mined since allotted
The Supreme Court today has cancelled 214 coal block allocations, out of 218 it declared illegal in August, 2014. Four government but non JV coal blocks have spared.
All private companies, which were allotted coal blocks by various governments between 1993 and 2011 stand to lose.
Earlier, the government had asked the court to exempt nearly 40 coal blocks that have either started production or are near it, but only four have been spared. One of these four has been allotted to National Thermal Power Corporation (NTPC), two belong to Sasan and one is with Gas Authority of India Limited.
The court has given six months’ breathing time for 46 blocks producing coal to wind up. Also, companies have been asked to pay a fine of INR 295/MT from the time the coal was mined. The government is now free to auction or allot the blocks to central companies.
Coal miners & power producers had argued that a huge investment was at stake and the allotments should be taken up case by case.
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