Coal Ministry seeks clarification from Law Ministry on blocks

New Delhi: In light of the apex court’s observations, the Coal Ministry has sought clarifications from the Law Ministry on various issues, including whether the mines can be allotted to State PSUs and new end-use plants.

The development follows the Supreme Court quashing allocation of 214 coal blocks allotted to various companies since 1993.

“In the light of the observations of the Supreme Court, the Ministry of Coal has sought clarifications from the Ministry of Law on issues (under the amended provisions of the MMDR Act, 1957) including 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 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.

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The Supreme Court had last month quashed allocation of 214 of 218 coal blocks allotted to various companies since 1993, terming it as “fatally flawed” and allowed the Centre to take over operation of 42 such blocks which are functional.

The apex court 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 has been invested in 157 coal blocks and Rs. 4 lakh crore in end-use plants.

PTI