Centre Determined to Change End-use of JSPL’s Coal Blocks.

Government may approach the apex court of India against Delhi high court’s order that was in favor of JSPL. Delhi high court, in Feb’15 directed the Centre to briefly review all the factors before considering the three coal blocks in Odisha and Chhattisgarh for power sector.

Supreme court has ordered status quo on case regarding the change in end use of three coal blocks namely Utkal B1, Utkal B2 and Gare Palma IV/6 in sates of Chhattisgarh and Odisha. However, the apex court ordered JSPL to respond to government’s petition and stated next hearing on the matter in the Sep’15.

In Dec’14, the technical committee established by Centre had recommended the change in end use of the three coal blocks from steel to power. Against which JSPL had filed a petition in Delhi high court arguing that it had already invested about INR 190 billion on the end-use plant and INR 1.38 billion for developing Utkal B1 coal block.

Feb’15 hearing to plea, Delhi high court ordered in favor of JSPL and directed Centre to review its decision of merging Utkal B1 (JSPL) & Utkal B2 (Monnet Ispat), changing its end use. The HC had also stated earlier the end-use had been changed in accordance with ‘energy security of the country’, which refers to using renewable sources of energy instead of coal, to generate power.