28,000 MW power capacity may be affected due to SC judgement: Deloitte

As much as 28,000 MW of power generation capacity may be affected if the Supreme Court were to cancel coal mines that it has declared illegally allocated between 1993-2010, according to Debasish Mishra, Senior Director (Consulting), Deloitte.

The apex court today held that all coal block allocations made since 1993 till 2010 before pre-auction era during previous NDA and UPA regimes have been done in an illegal manner by an "ad-hoc and casual" approach "without application of mind".

The 28,000 MW capacity includes output from both state-run and private sector projects.

"There are IPPs (independent power producers) that have direct allocation of coal blocks and some were developing mines allocated to State Mineral Development Corporations - both put together there may be almost 26,000-28,000 MW of capacity that will be affected by the decision of SC," Mishra said.

Power and Coal Minister Piyush Goyal today hailed the decision of the apex court and said that the government is ready to act quickly once the court delivers its final view on the coal mines allocation.

He told reporters that the government is awaiting Supreme Court to deliver its final view on how the mines "illegally" allocated between 1993 and 2010 should be treated.

The apex court which examined the allocation of 218 blocks, said "Common good and public interest have, thus, suffered heavily" as "there was no fair and transparent procedure, all resulting in unfair distribution of the national wealth.