Domestic companies and global investors are waiting for cues from the government on the timeline and rules for pricing and allotting coal mines that the Supreme Court cancelled in a landmark judgement on Wednesday.
Of the total 218 blocks, only four have been spared — one each of SAIL and NTPC, and two belonging to Reliance Power-owned Sasan Power Ltd.
Analysts also said that there could be a sharp jump in India’s coal imports in the short-term that the apex court’s decision also affects the 46 operational blocks.
“In the event of complete de-allocation of the coal blocks, the import bill of India would jump by $3 billion,” broking and research firm Macquarie said in a recent report.
Domestic industry leaders said that the court’s ruling will likely usher in transparency, but cautioned that it could hurt sentiments and business climate if the government doesn’t quickly frame new rules and carry out the bids.
“I’m sure the government has a back-up plan as to how to accomodate the mines that have been deallocated,” said Kumar Mangalam Birla, chairman, Hindalco.
Tata Group firm Tata Power said in a statement, “Tata Power would study the order... the company looks forward to opportunities of having a new, legally enforceable framework, by which coal blocks could be awarded, perhaps at an early time.”
FICCI president Sidharth Birla hoped that the apex court’s decision would act as a precursor to a review of the “coal sector policy, paving way for full-fledged coal reforms.”
Of the total 218 blocks, only four have been spared — one each of SAIL and NTPC, and two belonging to Reliance Power-owned Sasan Power Ltd.
Analysts also said that there could be a sharp jump in India’s coal imports in the short-term that the apex court’s decision also affects the 46 operational blocks.
“In the event of complete de-allocation of the coal blocks, the import bill of India would jump by $3 billion,” broking and research firm Macquarie said in a recent report.
Domestic industry leaders said that the court’s ruling will likely usher in transparency, but cautioned that it could hurt sentiments and business climate if the government doesn’t quickly frame new rules and carry out the bids.
“I’m sure the government has a back-up plan as to how to accomodate the mines that have been deallocated,” said Kumar Mangalam Birla, chairman, Hindalco.
Tata Group firm Tata Power said in a statement, “Tata Power would study the order... the company looks forward to opportunities of having a new, legally enforceable framework, by which coal blocks could be awarded, perhaps at an early time.”
FICCI president Sidharth Birla hoped that the apex court’s decision would act as a precursor to a review of the “coal sector policy, paving way for full-fledged coal reforms.”
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