JSPL falls after CBI alleges it connived with coal officials to mine illegally

Jindal Steel and Power has shed around 2% to Rs 154.60 in BSE. According to a PTI report, CBI has found the company to have connived with the  coal ministry officials to “illegally” mine nearly three times more coal than permitted.

The agency, which has incorporated these details in the First Information Report (FIR) filed in the Gare Palma block case in Chhattisgarh, has said the ministry officials in connivance with the company not only overlooked the excess mining but also regularised it.

In the FIR, which has now been accessed, the agency has said according to data available “on record” while the approved coal production during 1998-99 to 2002-03 was 1.3 million tonnes (mt), the actual coal production by the company was about six mt. The production was an excess of 4.6 mt (nearly 300 per cent above the sanctioned extraction) of coal mined “irregularly”.

Defending its position, JSPL spokesperson said the production schedules mentioned for the first five years in the mine plans were based on the guidelines mentioned under section 22 (5) of the Mineral Concession Rules, 1960, wherein the registered qualified person (RQP), who prepares the mine plan, gives a tentative scheme of mining and annual plan for excavation from year to year for five years.

The spokesperson said it might, therefore, be noted that according to the approved capacity of two million tonnes a year for the first five years was below the cumulative year-wise capacity of 10 mt and, hence, there was no excess mining as alleged.

The stock opened at Rs 158.80 and has hit a low of Rs 152.25 while around 42 shares have changed hands in BSE and NSe combined till 12:17 hrs.