Government says no objection if all 218 blocks cancelled by SC

In a significant change of stance on the eve of the crucial hearing on the fate of 'illegally' awarded coal blocks, the Centre on Monday told the Supreme Court (SC) that it has no objection if all the 218 blocks are cancelled putting the onus on the three-Judge special Bench.

According to an affidavit filed by coal ministry secretary Akhouri Sanjay Sahay in the SC, the government is ready to begin on a "clean slate" with speedy, "transparent" fresh auctioning as the priority is to deal with the looming power crisis in the country.

"Centre has no objection to the cancellation of allocations declared illegal by the court. We are also not in favour of constitution of any committee to look into consequences of the judgment in the interest of bringing finality to the issue at the earliest. In view of the looming power crisis, Centre would like the process of reallocation of the blocks to start as soon as possible in a transparent man", the affidavit stated.

Last Monday, attorney general Mukul Rohtagi had fervently pleaded with the court to exempt 46 blocks which had secured lease, were functional and their end-use plants were also operational.

Giving details about the 40 producing blocks and six likely to come under production in 2014-15, the affidavit said that they are estimated to produce about 50 million tonnes this year. Information about mining lease, commencement of production and linked end-use Production investment received from allocatees of these 40 productional coal mines and six on verge of production were also placed before the court.

Out of the 40 functional mines, two are allocated to an ultra mega power project which has not been declared illegal by the August 25 judgement, it said.

The ministry, which gave details of 15 lignite blocks received from the allocatees, also stated that some of the hurdles it is facing as a result of the SC judgement and sought suitable directions. It said that the numbers of allocatees have acquired title of the land in respect of coal blocks which were allocated and now declared illegal, and on reallocation these allocatees be directed to reconvey the land to Centre. Upon cancellation of the coal block, the title of the land would still remain with the allocatee. In the event of subsequent grant of the coal block, it may not be possible for the grantee to obtain title of the land from the earlier owner, it added.

The affidavit also raised the issue of large number of bank guarantees which are currently alive and furnished by the allocatees to the Centre or to any of its instrumentality and sought future course of action in view of the blocks being declared as illegal. The ministry also sought to declare infructuous all the petitions filed in High Courts on the issue in view of the SC judgement, which was also informed that 80 blocks have been deallocated by the Centre through inter ministerial group (IMG)/intra ministerial review committee.

CENTRE TO SC

>> After cancellation, allocates may be directed to give back the land to the Centre upon payment of purchase price

>> Mining leases executed subsequent to coal block allocation be declared void

>> Decide on alive bank guarantees furnished by allocates