GMR Infrastructure Ltd said today the recent Supreme Court judgement that cancelled 214 coal blocks allocations, will not have any negative impact on the company.
According to a filing with bourses, the company said a coal mine block known as 'Rampia' in Odisha also stands cancelled, where GMR Group is one among the six shareholders.
"GMR Group has not made any significant investment and no borrowing was made for the development of Rampia Coal Block. We are of the opinion that the current SC order will not have any negative impact on GMR Kamalanga Energy or GMR Group," the filing said.
The Supreme Court on Wednesday cancelled 214 coal blocks allocations, of the total 218, allotted to power, steel and mining companies since 1993.
The Rampia mine was allotted to GMR Energy Ltd., and intended to feed coal towards 550 MW of power generation at GMR Kamalanga Energy Ltd (GKEL). However, the mine could not be developed for various reasons beyond the control of the developers, GMR said.
In addition to the FSA with Coal India, GKEL also has a Firm linkage of Coal Supplies for 500 MW, assuring fuel linkage to Kamalanga Thermal Power Plant to its full capacity. The total plant capacity is 1,400 MW and currently 1,050 MW is operational.
Shares of GMR closed at Rs 19.30 up 3.49 per cent over previous close on BSE.
