SC verdict on Coalgate today

Verdict will clear cloud on whether these blocks would be re-allocated or let off the hook with penalty

The Supreme Court verdict on the fate of 194 coal blocks allotted over the past two decades is expected to be out on Wednesday. In a ruling on August 25, the apex court had declared the allocation of these blocks as illegal. The verdict is expected to clear the air on whether these blocks would be re-allocated or let off the hook with a penalty. Allied industries such as power, cement and metals have filed proformas with the government, requesting 40 operational coal blocks and six about-to-produce coal blocks to be spared from cancellation.

States such as Jharkhand, Odisha, Chhattisgarh and Madhya Pradesh have written to the Centre, requesting it not to consider re-allocation of coal blocks in its suggestions to the court, as it would lead to escalation in the cost of mining.

As the stakeholders, from power project developers, cement companies to bank and financial institutions; wait with bated breath, Rs 2 lakh worth of investments is at stake.

Out of 216 coal block allocations under the scanner, 105 allocations were made to private companies, 99 allocations were made to Government companies and 12 allocations were made to Ultra Mega Power Projects (UMPPs) and that after adjusting 24 de-allocations and 2 re-allocations, a total number of 194 allocations, including allocations to private parties form the subject matter of the writ petition.

The Supreme Court on August 25 held allocation of captive coal blocks by the Union government between 1993 and 2010 as illegal under the Coal Mining Nationalisation Act. It also questioned the modus operandi of the screening committee in granting coal blocks and mining licences.