Coal news and updates

Coal blocks: Govt struggling without plan of action

Companies affected by the cancellation have started queuing up at ministry but have gone away disappointed as the coal minister is busy with the Maharatsra and Haryana elections.

Three weeks after the Supreme Court de-allocated 204 coal blocks, the government is still struggling to put together a plan. Industry is nervously waiting for clarity on the auction process but nothing has been forthcoming so far and with coal minister Piyush Goel busy with Maharashtra elections, the wait may be longer.

Earlier Goyal said that the government was ready to act quickly post Supreme Court's order in the coal allocation case.
However, it has been three weeks since the apex court cancelled as many as 204 coal blocks, but the government is still struggling to put together a plan to avert the coal crisis ahead.

Companies affected by the cancellation have started queuing up at ministry but have gone away disappointed as the coal minister is busy with the Maharatsra and Haryana elections. Sources say the coal ministry is not clear about what happens to the land acquired by the allottees while operational mines are concerned about the retrospective penalty and seek clarity on whether the government will allow right of first refusal during the auction.

In the absence of a coal linkage plan, levy of penalty and dependency on coal imports, this Diwali may see electricity tariffs heading higher.

Source: moneycontrol