January 16, 2014

Coal blocks allocation issue

As per the SC directive if the government now scraps all the allocations, it will likely hamper the confidence of the industry in the mining field and in turn jeopardize the dream of higher industrial growth in near feature. The de-allocation will frustrate the genuine mining companies, as lot of money and time is already invested by them and most of the coal blocks are not developed because of the delay in environment clearance by the state and central government. This also effects the banking sector as they also invested huge funds in mining companies. The pragmatic solution to this issue is discovering appropriate price for the block by auction and ask the allottees to pay the same.

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