Coal Ministry releases Rs 78 crore compensation to GMR, Hindalco, others

NEW DELHI: The coal ministry has released Rs 78 crore compensation to seven firms including GMR Energy, Hindalco, Neyveli Lignite Corp and Singareni Collieries Company Ltd.

The compensation has been made to companies whose coal block allocations were cancelled by the Supreme Court in 2014. The compensation is towards costs incurred by the previous allottees for obtaining geological reports and other essential surveys.

Compensation has been released by the nominated authority in the coal ministry to companies including Indrajit Power private Ltd and Maharashtra State Power Generation Corp for eight blocks.

The ministry had in May released Rs 677 crore as compensation for surveys to firms like Hindalco, GVK Power, Jindal Steel & Power Ltd, Usha Martin, Jayswal Neco and Abhijeet Infrastructure for 19 auctioned mines.

The nominated authority had taken the money from successful bidders at the time of auctions and allotment and has now released it to the previous owners.