Jindal was the biggest beneficiary of the captive coal block allotments, having been given nine blocks in all.
A research report brought out by Kotak Institutional Equities suggests that it costs Rs 600-800 per tonne to produce captive coal. In comparison, it costs Rs 3,500 per tonne to import coal. Hence, imported coal is four to five times more expensive than captive coal.
It needs to be pointed out here that only 40 out of 218 coal blocks are currently operational. Companies, given that they had got blocks for free, seemed to be in no hurry to start production. That wouldn't have been the case, had they paid for it in the first place.
http://firstbiz.firstpost.com/economy/lessons-from-coalgate-and-naveen-jindal-its-crucial-to-save-capitalism-from-capitalists-102181.html
A research report brought out by Kotak Institutional Equities suggests that it costs Rs 600-800 per tonne to produce captive coal. In comparison, it costs Rs 3,500 per tonne to import coal. Hence, imported coal is four to five times more expensive than captive coal.
It needs to be pointed out here that only 40 out of 218 coal blocks are currently operational. Companies, given that they had got blocks for free, seemed to be in no hurry to start production. That wouldn't have been the case, had they paid for it in the first place.
http://firstbiz.firstpost.com/economy/lessons-from-coalgate-and-naveen-jindal-its-crucial-to-save-capitalism-from-capitalists-102181.html