• 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 24 hours European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 4 days Demonising fossil fuels has caused major grid problem in Australia
  • 8 days "And this is perhaps the most dangerous kind of government there can be."
  • 3 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 3 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 5 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 330 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 7 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
The World’s Top Coal Exporter Can’t Afford To Go Green

The World’s Top Coal Exporter Can’t Afford To Go Green

The world’s biggest coal exporter…

Colombia Could Help Europe Ditch Russian Coal

Colombia Could Help Europe Ditch Russian Coal

Sanctions on Russia have worsened…

Ag Metal Miner

Ag Metal Miner

MetalMiner is the largest metals-related media site in the US according to third party ranking sites. With a preemptive global perspective on the issues, trends,…

More Info

Premium Content

Supreme Court Ruling Deals Blow To Indian Coal Sector

In the end, it turned out as many feared it would. The Supreme Court of India canceled all but 4 of the 218 coal blocks allocated for mining by the government over the last two decades.

Following this, power, steel and cement companies that were given these blocks between 1993 and 2010 will have to return them, and then, the government is free to either re-auction them or allot them to central firms.

MetalMiner reported in August that the apex court had found all such coal licenses illegal.

Related: Why King Coal Will Keep Its Crown

The coal blocks that were spared are being used for mega power projects by Reliance Power and the state-run National Thermal Power Corporation and Steel Authority of India (SAIL).

India's Coal Stock
India’s available coal stocks. Source: Reuters

Of the 218, about 40 had started operating the mines, and they have been given six months to wind operations down. What comes as a double whammy to these miners is that the court has asked them to pay a hefty fine, about US $5 (Rs 295) for every metric ton mined so far. Though the final figure is being calculated, the fines itself are likely to end up in millions of dollars.

Though expected, the verdict has left Indian industry, and even its banking sector, numb. This is the second time in two years that the Supreme Court has made such a ruling, which will have a major impact on the way India does business. In 2012, the court had ordered all 122 2G telecom licenses canceled, because of irregularities in allotment.

Metal stocks fell sharply after the Supreme Court’s verdict on Monday came in while even the Bombay Stock Exchange sensex fell by over 200 points but recovered later.

Related: This Just Sent Shockwaves Through The Coal Market

On August 25, the court had ruled that the coal blocks were allotted by “ad-hoc” means, adding that “common good and public interest had suffered heavily in the unfair distribution of the national wealth – coal.”

So now what? There are conflicting predictions coming in from industry and analysts. Some in India Inc felt the ruling would cause serious supply disruptions and heighten the power crisis, negatively impacting the Indian economy.

A report in The Economic Times quoted the President of the Confederation of Indian Industry (CII) Ajay Shriram as saying the decision was likely to adversely impact domestic coal supplies in the country and would erode investor confidence. Almost all the major industry representative bodies were unanimous that the ruling would negatively impact the Indian business environment.

by Sohrab Darabshaw

(Source: www.agmetalminer.com)

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News