JSPL has not adjusted the penalty levied by the Supreme Court in the Q2 results...
Jindal Steel and Power (JSPL) on Tuesday said it has filed a review petition in the Supreme Court against the coal block cancellation order and added the petition also seeks clarity on the penalty of Rs 295 per metric tonne levied on miners.
JSPL has not adjusted the penalty levied by the Supreme Court in the Q2 results as it could not ascertain the amount and will do so after a decision on its review petition. The court in its order had directed the companies to pay for the coal extracted from their mines.
“The Supreme Court order on penalty is subject to interpretation and we don’t know if it’s based on coal extracted or coal used,” said JSPL Group CFO K Rajagopal, adding the company believes the amount payable as penalty will be less than Rs 3,000 crore suggested by analysts based on amount of coal mined from blocks allocated to the firm.
Brushing aside reservation on the absence of right of first refusal (RoFR) in the Ordinance promulgated recently by the government, Rajagopal said that bidding companies are not likely to bid for mines previously owned by others and added it does not see a situation where bids would be exorbitantly high due to competition among bidders for a particular mine.
The company also sees the Ordinance allowing companies to swap coal from different mines as an enabling provision but said the practical implementation will have to be ascertained on case-to-case basis. The Naveen Jindal-owned steel and power company also said it would wait for detailed auction rules and a decision on its review petition by the Supreme Court before arriving at an estimate on resources needed to participate in the coal block auction process.