Reassure Investors To Attract Funds In Coal Sector: Jindal


NEW DELHI: In the face of growing coal imports, energy-hungry India needs to develop more coal blocks and reaffirm the faith of corporate sector in government decisions to ensure continued flow of investments from private sector, Naveen Jindal, chairman of Jindal Steel and Power, said.

"All the coal blocks have been allocated by Government of India. State governments have given them either prospecting license or mining leases. If today these blocks are cancelled, country's credibility will be seriously eroded. Who will come and invest here?" Mr Jindal said in an interview.

India had imported around 168.4 million tonnes of coal worth 95,000 crore last fiscal and this figure is expected to rise in the current year. India is the third largest importer despite having fourth largest coal reserves in the world.

The Supreme Court had on August 25 held that all coal blocks allocated during last 17 years since 1993 by various regimes at the Centre were done illegally and arbitrarily, bringing uncertainty to the fate of 218 block allocations.

The Centre has advocated cancellation of blocks while suggesting that 40 operating blocks and six others soon to be started may be exempted after imposing an additional levy.

The apex court is likely to give its final order soon.

In a departure from global practises, India mandates allottees to set up end-use plants on the basis of allocated coal blocks besides charging a hefty royalty at a rate which is the highest in the world. Rates are hiked every 3 years.

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Source: PTI