AG WANTS CANCELLATION OF COAL ALLOCATIONS SINCE’ 05 Set to inform top court on centre’s stand HAULED OVER THE COALS • Attorney General G E Vahanvati tells Supreme Court he has advised Centre to cancel coal block allocations since 2005 if these had not yet been converted into mining licences. • SC bench says mode and manner of coal block allocations “conveys something had gone wrong”; vahanvati agrees. • Court slams government for failing to achieve objective for which privatization of coal mining was started • By Wednesday, the government will inform Supreme Court about its stand on 25 allocations to private parties. Power is essential for boosting industry and for giving electricity to homes. But after 20 years of privatization, power is not available to 50% of houses in the country. So what did we achieve? Amid the Supreme Court’s open skepticism in the matter and opposition parties’ demand for a probe against the prime minister attorney general G E Vahanvati has advised the Centre to cancel coal block allocations by the screening committee since 2005 if these had not yet been converted into mining licences. “I have taken up the matter with the government. I have told them about my views. It is under consideration. By Wednesday, I will inform the court about the government’s decision,” the AG on Thursday told a bench of Justices R M Lodha, Madan B Lokur and Kurian Joseph, which is Monitoring CBI probe into alleged irregular allocation of coal blocks. Of the 46 coal blocks allotted to private parties since 2005 under Congress-led UPA regimes, the government has already de-allocated 15. Of the remaining 31 allocations, two have been granted mining lease by states and in three other cases, prospecting licence has been given. So, by Wednesday, the government will inform the court about its stand on 25 allocations to private parties. To a question from the bench about the allocation procedure, the AG said it could have been done in a more publicized manner by framing appropriate rules keeping in mind provisions of Mines and Mineral (Development and Regulation) Act and Coal Mines Nationalization Act. Though the court commended the AG and his team of junior lawyers for their methodical approach, it did not mince words about the inabillty of the government to achieve the objective for which the entire process of privatization of coal mining was started. The AG had said coalmines were allotted to private parties for setting up power projects to improve the energy scenario in the country in the early 1990s. The bench said,” …after 20 years of privatization, power is not available to 50% of houses in the country. So what did we achieve?” WHY IS IT TAKING SO LONG TO CANCEL COAL ALLOCATION, ASKS TOP COURT The Supreme Court said: “The Centre has repeatedly taken the stand before the court that the Centre’s letter for coal allocation was not a bankable document and that it conferred no legal right to the allottee to start mining. If it is not enforceable, then why is it taking so long for the government to cancel it?” The AG said, “I am waiting for the (Centre’s) response. I have a point of view, which I have communicated. It is not that they will accept my view.” The AG too was taken by surprise by the Jan 1 letter from the Maharashtra to the Centre demanding cancellation of three coal block allocations-to Chaman Metallics’ spongo iron plant in 2007, to Sunflag iron and Steel and Dalmia Cement in 2009 and Muharashtra state mining corporation to supply coal to cement, iron ore and SSI units in Maharashtra in 2007-in which mining lease is yet to be granted. Maharashtra said, “It is of the considered opinion that in the cases of coal block allotment to private companies through the screening committee route, where the government of India has given approval under Section 5(1) of the MMDR Act but he mining lease has still not been executed, all such cases should be put to auction by Competitive Bidding of Coal Mines Rules, 2012. (By Dhananplay Mahapatra, Leader, Government of India, Ministry of Mines, AICGO&SLM / AIMLSM, New Delhi, 10-01-2014, Volume-20, Part.5)
Posted on: Thu, 06 Mar 2014 02:23:27 +0000
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