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'Cancelled’ operational coal blocks must dish out `10,500 cr more levy: Govt

"As regards financial implication of the judgement on the coal sector, the total amount of additional levy payable by the allocatees of producing coal blocks for the coal produced/ likely to be produced up to March, 2015 is estimated at Rs 10,494.36 crore," Coal Minister Piyush Goyal said in written reply to the Rajya Sabha.

The Supreme Court had in September declared allocations of all coal blocks made through the Screening Committee and through government dispensation route since 1993 as illegal and arbitrary.

Of the 218 blocks, it had cancelled allocation of 204. In case of 42 coal blocks (37 producing and five likely to come under production), cancellation shall take effect from 31 March, 2015. The Court has also imposed an additional levy of Rs 295 per tonne on the total coal extracted since the commencement of the production from the coal mine to be deposited with the government.

The minister further that 325.507 million tonnes (Provisional) of coal has been mined from 37 producing coal mines (which have been cancelled) since the commencement of production till October, 2014. As the apex Court has allowed coal production from the producing coal blocks till 31 March, 2015 there is no disruption in production of coal at present, he added.

For management and reallocation of the cancelled coal blocks, government has promulgated 'The Coal Mines (Special Provisions) Ordinance', on 21 October to ensure smooth transfer of rights, tiles and interest in mines along with its land other associated mining infrastructure to the new allottees to be selected through an auction or allotment to a government company, as the case may be.
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