JSPL, Prakash Industries deposit extra levy for cancelled coal blocks

Our Bureau Updated - November 27, 2017 at 03:14 PM.

But Jindal Steel says it still reserves the right to challenge the computation of the levy

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Jindal Steel and Power Ltd (JSPL) and Prakash Industries Ltd have deposited the additional levy of ₹295 a tonne, as directed by the Supreme Court when their coal blocks were deallocated on September 24.

While deallocating the 204 blocks, the apex court had ordered the prior allocattees to deposit an additional levy of ₹295 for every tonne of coal mined by December 31.

Legal rights

JSPL and its subsidiary, Jindal Power Ltd, have submitted ₹1,989.83 crore and ₹1,099.41 crore, respectively.

“The payment deposit of additional levy is without prejudice to the company’s legal rights and remedies, including but not limited to challenging the imposition and computation of the additional levy, and the company reserves all its legal rights to challenge this computation,” the company said in a statement.

Can bid in auction

Prakash Industries said it has deposited ₹234.22 crore with the Coal Controller, Ministry of Coal. The company was a prior allocattee of the Chotia block in Chhattisgarh, which is up for auction in the first round.

Prakash Industries said in a statement that the company is now eligible to participate in the auction as it has deposited its penalty. While December 31 was the last day for submission of the additional levy, it is not immediately known how much has been deposited by the prior allocattees. An estimated ₹10,000 crore is expected to be deposited by prior allocattees through the additional levy.

Published on December 31, 2014 17:01