Hope technical panel will consider merits for end-use: JSPL

Welcoming the Delhi High Court's decision, Jindal Steel & Power Limited today said it is hopeful that the technical committee will consider the merits for end-use of coal blocks.
The company said it has already invested in excess of Rs 30,000 crore in setting up end-use plants in Odisha and Chattisgarh based on Utkal B1 and Gare Palma IV/6 mines respectively.
In a relief for Jindal Steel and Power Ltd (JSPL) and its promoter Naveen Jindal, the court today directed a technical committee to review its own decision to change the end-use of two coal blocks earlier alloted to the company and removing the mines from the auction.

"We welcome the decision of Hon'ble High Court and are optimistic that the technical committee will consider the merits for end-use of coal blocks as envisaged earlier.
"JSPL has already invested in excess of Rs 30,000 crore in setting up end-use plants in Odisha and Chattisgarh based on Utkal B1 and Gare Palma IV/6 mines respectively," a spokesperson for the company said.
Earlier in the day, a bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva took out Utkal B1 and B2 blocks in Odisha and Gare Palma IV/6 in Chhattisgarh, from the auction process, saying that while changing end-use of these blocks to power sector, the aspect of its adverse impact on steel sector "has not been considered".

In its statement, the company said: "We are confident that the Government under the distinguished and exemplary leadership of Prime Minister Narendra Modi will consider our end-use projects in Odisha and Chattisgarh on their merits - including the innovative use of indigenous coal as well as their huge potential of employment creation in the respective regions."

The Delhi High Court also directed the committee, which had been set up to classify coal blocks as well as formulate criteria for their auction and allotment, to review its decision to merge Utkal B1 and B2, saying "there was no application of mind".

JSPL had been allocated Utkal B1 for operating a steel unit and Gare Palma IV/6 for a sponge iron industry. However, the allocations, along with with others, were cancelled by Supreme Court last year.
JSPL had contended that change of end-use of these blocks from steel and iron to power has prevented them from bidding for them, which could result in their investments of over Rs 24,000 crore, to set up units close to these mines, going waste.