Utkal B1: Litigation troubles for JSPL as govt turns to SC

The government has moved the Supreme Court against the relief granted to Jindal Steel and Power Ltd (JSPL) by the Delhi High Court with regard to Utkal B1 block. The case pertaining to JSPL being a prior allottee of Utkal B1 block, a block with an output of about 300 million tones, and had made significant investments to the tune of Rs 20,000 crore in setting up a local steel plant, as far as the Utkal B1 block is concerned. Government, on the contrary had changed the end use of this coal block from steel to power, just prior to the auctions. JSPL had contested this change of end use and was granted relief by the High court, which otherwise would have left its plant “high and dry”.While the Delhi High Court has directed government to review its decision on end use of blocks, (coal ministry) the government has moved SC saying that its statute allows it to fix end use of any coal block, here- Utkal B1, B2, which were best suited for power.Supreme Court is likely to hear the matter in the second week of September and has also issued a notice to JSPL directing status quo to be maintained for blocks in question.