CoalMin seeks clarity from LawMin on cancelled coal blocks

In light of the Supreme Court's observations, the Coal Ministry has sought clarifications from the Law Ministry on various issues including whether the mines can be allotted to public sector undertakings (PSUs) and new end-use plants.

The development follows the apex court's verdict quashing allocation of 214 out of 218 coal blocks allotted to various companies since 1993.

"In the light of the observations of the Supreme Court, Ministry of Coal has sought clarifications from the Ministry of Law on the issues (under the amended provisions of the MMDR Act, 1957) like whether allocation of coal blocks can be made for the purpose of mining to a State PSU or PSU of the state government," a source said.

The source further said that clarifications have also been sought on whether coal blocks can be allocated jointly to more than one company or to a consortium of two or four entities engaged in the business of end-uses for existing and operational end use plants and whether mines can be allotted to new end use plants as they may not be engaged in the business of end-uses at the time of allotment.

SC had last month quashed the allocation of the aforementioned 214 coal blocks terming it as "fatally flawed" and allowed the Centre to take over operation of 42 such blocks which are functional.

The SC said the beneficiaries of the illegal process "must suffer" the consequences and refused to show sympathy to private companies which submitted that Rs 2.87 lakh crore have been invested in 157 coal blocks and Rs 4 lakh crores in end-use plants.