Coal Compensation Bonanza: Electrosteel Castings Bags ₹4.99 Billion from Ministry

Electrosteel Castings Ltd announced today that it has received a provisional compensation order from the Ministry of Coal, with the compensation estimated at 4.99 billion rupees. This development follows the ongoing process under the Coal Mines (Special Provisions) Act, 2015, which mandates compensation to previous allottees of coal blocks whose allocations were cancelled by the Supreme Court.

 

The compensation will go towards covering the cost of mine infrastructure establishment by Electrosteel Castings, the acquisition of coal-bearing land, and the acquisition of required permission in the Parbatpur coal block. The company has undergone a long regulatory and judicial process to reach the appropriate compensation, from petitions to the Delhi High Court to follow-up orders for re-examination by the Nominated Authority of the Ministry of Coal.

 

It is according to the Ministry's latest order that the temporary compensation figure stands at 4.99 billion rupees, which is another step towards the resolution of the matter. Partial compensation had already been paid to Electrosteel Castings, and further evaluation and court rulings had given rise to this latest finding. The company will now have to evaluate the terms of the order and address the authorities as required to seal the compensation process.

 

This compensation order is a significant business and financial success for Electrosteel Castings, which can further strengthen its balance sheet position and drive future strategic initiatives.

 

Source: MarketScreener