Jindal’s investment in lost mines faces uncertain future


Jindal’s investment in lost mines faces uncertain future

The loss of two coal blocks for the second time following a Delhi High Court judgement last week has put the investments of Jindal Power Limited (JPL) under stress. The company could lose around Rs 170 crore invested in the coal washery and a conveyor belt associated with the Gare Palma-IV/2&3 coal block in Jharkhand.

The government has decided not to set up any committee to take a decision on the matter. The high court had asked the government to consider setting up a committee for overseeing operations at the mines. “No committee is needed for this. The HC has clearly supported our stand. Coal India is mining coal from the block. We would not re-auction the mine as currently there is no demand for power sector coal mines,” said a senior coal ministry official requesting anonymity.

Another official said that the government might ask the company to dismantle the attached mining infrastructure as the state-owned Coal India is mining coal from it. Read More…

 

Credit By : Business Standard.com

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