Committee set up to assess compensation

Days after promulgating an ordinance to e-auction Supreme Court-cancelled coal blocks, the government has formed a committee headed by former central vigilance commissioner Pratyush Sinha to assess compensation to be paid for taking over running or ready-to-produce mines.

The panel, comprising officials from coal, power, finance and law ministries, will give its recommendations by November 10, sources said.

The Supreme Court had on September 24 cancelled allocation of 204 coal blocks to various companies between 1993 and 2009. Of these, 37 are operational coal mines and five are ready to produce by April. Unlike others, their cancellation is to take effect from April 2015.

The sources said the committee has been asked to value assets of each of these 42 coal blocks for mining infrastructure such as tangible assets used for coal mining operations, fixed installations and land.
COMPENSATION CALCULATION

• Committee, headed by former central vigilance commissioner Pratyush Sinha, to assess compensation to be paid for taking over running or ready-to-produce mines
• Panel, comprising officials from coal, power, finance and law ministries, to give recommendations by November 10
• It has been asked to value assets of each of the 42 operating or ready-to-produce coal blocks for mining infrastructure