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. 

Commenting on court ruling on coal block allocation, Arundhati Bhattacharya, chairman, State Bank of India said, "We believe that uncertainty is possibly the worst enemy of growth. We are glad that this is over with the SC verdict on coal blocks allocation. We now look forward for a quick plan of action for ensuring that coal supplies are not disrupted and thereafter a swift and transparent bidding process for reallocation."