Assess coal block junking impact: Govt to states

Earlier in September, the apex court had quashed allocation of 204 out of 218 coal blocks alloted to various companies since 1993 terming it as "fatally flawed" and allowed the Centre to take over operation of 42 such blocks which are functional. The cancelled blocks included those allocated to state-owned companies. The Supreme Court had also directed allottees of coal blocks to pay within three months an additional levy of Rs 295 per metric tonne of coal extracted to compensate financial loss caused to the exchequer by the illegal and arbitrary allotments.

The Coal Ministry in a letter to states said: "Information regarding state finances impacted due to cancellation of coal blocks and penalties imposed on some of the state-owned power utilities has not been received by this ministry. The said information is required by the 14th Finance Commission to finalise its report,"

In a letter to Chief Secretaries of Maharashtra, Madhya Pradesh, Chhattisgarh, Jharkhand, Odisha, West Bengal and Telangana, the ministry said since the 14th Finance Commission is in advanced stages of finalising its report, it is requested to furnish the information immediately.