Movable assets tangle in coalmines transfer

Valuation of movable assets remained the only contentious issue in the coalmines transfer to the new owners following its reallocation.

The apex court in September last year had quashed the allocation of 214 coal blocks following controversy over its allocation. The blocks were auctioned and reallocated to the owner paying the highest price. In Chhattisgarh, nine coalmines were reallocated to the new owners.

As per the court guidelines, the transfer of liabilities and assets were to be completed by April 1. The prior owner of the mine was allowed to continue mining till March 31 while the new owner would take control over the operation from April 1. The process of handing over nine mines having an approximate reserve of 600 million tonnes started Wednesday in Chhattisgarh.

The mines include Chotia (from Prakash Industries to Balco), Gare Palma 4/7 (from Sarda Energy to Monnet Steel), Gare Palma 4/1 (from Jindal to Coal India Limited), Gare Palma 4/2 and 4/3 (Jindal to Coal India Limited), Parsa East (retained by Rajasthan Vidyut Nigam Limited), Gare Palma 4/8 (Neco Jaiswal to Ambuja Cement), Gare Palma 4/5 (Monnet Steel to Hindalco) and Gare Palma 4/4 (Neco Jaiwal to Hindalco).

The coal mines (special provisions) ordinance, 2014 had designed the framework for the transfer of assets and liabilities. The ordinance had a clause that new and prior owners of coal mines would settle among themselves the transfer of assets.

"After hours of discussion, consensus could not be built on the valuation of movable properties though there was no dispute in other assets," a senior official of Balco said. He was part of the team that negotiated with the Prakesh Industries officials to officially take control over the management and operational rights of Chotia mines.

The Balco management had sought two days time to finalise the cost of movable assets, the Prakash Industries officials said. If the valuation was not appropriate according to the company's calculation, it would move to the court of law, they added. The Balco officials are however confident that they would settle the issue amicably.

Officials in state's mining department also said that there was major confrontation in the final valuation of the movable assets. The local administration had been put on alert today in the districts where mines had been located for a smooth transfer.

"The process of transfer of assets to the new owners was peaceful and no law and order issue was reported from anywhere," Inspector General of Police (Bilaspur range) Pawan Deo said. The range had maximum mines. He added adequate security arrangement was made as precautionary arrangement in the sites.