Wednesday, September 24, 2014

Supreme Court cancels all but four coal blocks allocated since 1993

The Supreme Court on Wednesday cancelled 214 coal block allocations, giving the owners six months time to wind up their work.

The apex court has spared 4 coal blocks allotted to Sasan ultra mega power project (UMPP), NTPC and SAIL.

The saved four coal mines allottes, two for Sasan UMPP and one each for NTPC and SAIL, will pay government an additional levy of Rs 295 per tonne of coal extraction.

The top court said it has given six months breathing time to functioning plants to arrange for coal from other sources.

SC said government's stand that it was prepared for cancellation of allocation as logical consequence of the court's judgment declaring all allocations illegal and arbitrary helped it in arriving at a decision quickly on fate of coal blocks.

The top court had earlier declared all 218 coal block allocations since 1993 as illegal and had reserved its decision on their fate.

Supreme Court also accepted CAG's estimate that there was loss of Rs 295 per mega tonne due to the non-operation of the mines.

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