The Supreme Court on Wednesday has cancelled 214 coal blocks, which were declared illegal by it in a previous judgement. The apex court has exempted 4 coal blocks allocated to SAIL, NTPC and Sasan UMPP from cancellation.

The apex court has given 6-month period to stop the production to existing coal block operators. It has imposed penalty of Rs 295 per tone on production of coal.

The Supreme Court has asked the government to make appropriate arranagements for reallocation of coal blocks within 6 months. After March 2015, the government can auction the aforesaid coal blocks, the court said. 

Holding the Supreme Court in greatest respect, apex industry body Assocham said its ruling, though, cancelling 214 coal blocks including those which are operational or are on the verge of getting operational is a bit harsh.
 
"Our main concern is on the kind of negative impact on the economy which has just been showing signs of recovery after over two years of slowdown," said Rana Kapoor, President of Assocham while reacting on the ruling of the apex court.

"Being largely dependent on the thermal power, it is the coal which fires the economic growth, which will be halted, besides, the dependence on coal imports will increase," said Kapoor.

The Assocham Chief also expressed hope that the government gets about announcing new system of allocation of coal blocks with great speed.