Supreme Court cancels 214 coal blocks allocation; Hindalco, JSPL, Usha Martin fall

MUMBAI: The Supreme Court has cancelled all coal blocks except government run non-JV allotments. According to experts, this was on expected lines after the apex court had judged all coal block allocations post 1992 as illegal.

Shares of metal companies Hindalco, Jindal Steel, Tata Steel and Usha Martin slipped upto 14 per cent on selling pressure post ruling.

The court has cancelled total 214 allocated coal mines out of 218. NTPC's Pakri Barwadih block and allotments to 3 UMPPs were not cancelled.

The SC has asked holders of 46 operational blocks to file reply in six months time.

The government is ready to face implications of coal block cancellation and orders auction of mines after scrapping permits, the court said.

Attorney General, Mukul Rohatgi said the allottees have a breathing period of 6 months. The government will be free to auction coal blocks post March 31, 2015.

Coal India has been asked to take over operational blocks for 6 months.

At 02:10 p.m.; Hindalco was down 1.81 per cent, JSPL plunged 6.67, Tata Steel declined 1.86 per cent and Usha Martin fell 5.24 per cent.

Operational Coal Blocks:


Blocks where commencements were expected to begin soon: