Coal news and updates

The government will not press its request for sparing 46 coal blocks from cancellation at the next Supreme Court hearing, even as it started identifying mines that would likely become available for auction after the court's judgement.The decision was taken at a meeting held by Coal Minister Piyush Goyal with his ministry's officials on Wednesday, a senior government official said.

Last week, the Supreme Court held that the allocation of coal blocks to various firms between 1993 and 2009 was illegal. Following that, the government asked the court to spare 40 producing and six soon-to-be-operational blocks from cancellation, and instead impose penalties on the operators for any wrongdoing while procuring them. Wednesday's decision is a change from that stand.

The government will now merely pass on the information collected from the coal-block owners to the Supreme Court during the next hearing on September 9, which is crucial for the developers as it is probably the last chance for them to save their blocks.

The government will submit an affidavit containing names and status of the 46 blocks, but would not bat for them, the official said. "The government has decided to be silent and neutral during the hearing." The coal ministry on Wednesday shot fresh letters to the owners of the 46 blocks asking them to submit affidavits swearing that the information on coal blocks being submitted to the ministry was correct.This is in addition to the information regarding status of their coal blocks sought by the ministry on Monday. Half of the producing 40 blocks are owned by private firms and the rest by state-run companies. Jindal SteelBSE -4.56 % & Power, Steel Authority of India, Prakash Industries, Damodar Valley Corp, Monnet Ispat & Steel, Prakash Industries, Sunflag Industries, Electrosteel Castings and state utilities of West Bengal and Karnataka are among the owners. The six coal blocks that are expected to commence production shortly are allotted to companies including NTPCBSE 0.36 %, GVK Power & Infrastructure, Damodar Valley Corp and Jaiprakash Associates.

The ministry has also sent letters seeking information to state utilities in Rajasthan and Gujarat that operate 15 lignite mines.The official said the coal ministry has started identifying blocks that could come back to its kitty after the Supreme Court's hearing on next Tuesday.The government's pilot round of coal block auction didn't elicit any response from steel and cement companies, forcing it to scrap the bidding process. The ministry has been looking for mines with substantial reserves and pre-obtained clearances to attract investments.Goyal had on August 25 said the government was prepared to act quickly on the final decision of the Supreme Court. "Decisions will be taken expeditiously to ramp up indigenous production of coal," he said at that time. 

 

 

Source: ET