Zee Media Bureau
New Delhi: In a move that is leading closer to re-auction of the 214 coal blocks that were cancelled by the Supreme Court in September, the Cabinet late Monday evening recommended promulgation of Ordinance to the President to resolve the pending issues post the cancellation.
Finance Minsiter Arun Jaitley informed that a cabinet meeting on Monday has recommended the move to the President to resolve pending issues after SC quashed allocation of coal blocks earlier last month.
Earlier during the day, the government moved to bring an Ordinance that will enable it to acquire the land of these mines along with plants for auction later.
The Ordinance has been finalised and will be notified after approval of the Union Cabinet, a source said.
Arun Jaitley informed that sectors such as power, steel and cement were going to suffer because of non-functionining of coal mines whose allocation was cancelled.
The apex court had in September quashed allocation of 214 out of 218 coal blocks allotted to various companies since 1993 terming the method as "fatally flawed" while allowing the Centre to take over operation of 42 such blocks which are functional.
Jaitley also informed that coal mines would be allocated to state-owned organisations like NTPC and state electricity boards while e-auction would be held for actual users of steel, cement and power for private sector firms.
Mining requirements of Coal India Limited, present and future, will be adequately protected, the finance minister assured adding that enabling provision for allowing commercial users in
future will be incorporated in the Ordinance.
However, this is not de-nationalisation of coal mining, the original 1973 Coal Nationalisation Act remains, Jaitley said.
With PTI Inputs
