The Economic Times reported that India’s hearings regarding the future of 218 coal blocks given to companies for captive use are over. However, as yet no one knows whether the “allegedly flawed” allocation process will result in all the blocks being taken back or only some.
As quoted in the market news:
While it denies any lapses on its part, the UPA government, which made most of these allocations, is recommending a partial de-allocation, ostensibly to minimise the economic and political fallouts.
Last week, its top law officer, attorney general Goolam E Vahanvati, submitted an affidavit in the SC that listed 61 blocks given to private companies where mining was yet to start. It added that the government has given these 61 blocks three to six weeks to obtain all approvals, failing which they will be taken back.
A partial de-allocation, feels the government, will safeguard most of the investments made by companies, both in the blocks and the end-use plants linked to them. The government, in its affidavit, has pegged this figure at Rs 2,86,000 crore, for these 61 blocks—Rs 8,777 crore in the blocks themselves and Rs 2,77,000 crore in the end-use projects.