Besides, in case coal blocks are de-allocated a huge amount of loans extended by the banks will become non-performing assets; the chamber said expressing concern over the situation arising out of the Supreme Court ruling.
"It has created a fear psychosis in the coal consuming industries, such as steel, power, cement, aluminum etc. The stand of the Government of India that it does not have any objection to the coal blocks being de-allocated appears to have lost sight of the ground situation," the ASSOCHAM said in a statement.
According to the Assocham study, if the captive coal mining is stopped today, substantial power generation in Punjab, West Bengal and Karnataka will come to a standstill and particularly these states will be plunged into darkness. Large segment of industrial activities will come to near standstill.
The chamber said the Government has made a statement in the Supreme Court on September 1,2014 to save 46 coal blocks which have either become operational or are on the verge of becoming operational.
However, if reports that the Govt may not even press for this request are correct, it would be quite disturbing as lakhs of persons are working in these coal blocks and end-use plans. Investment worth lakhs of crores of rupees has been made in the End Use Plants / and coal blocks. These blocks must be saved in larger public interest.