Coal block cancellations: Govt still to decide on next step

AG advice on land and lease titles awaited; minister also busy in poll campaigning

A fortnight after the Supreme Court decided to cancel coal block allocations since 1993, the Union ministry is yet to pick up the threads. It is looking at various legal options that can stand the scrutiny of existing laws.

"The idea of an inter-ministerial committee was floated but has been scrapped, for now. The ministry would wait for the submission of the Attorney General before deciding the due course of action," said a senior official.

Another reason for this hiatus is that the minister for coal, power and renewable energy, Piyush Goyal, is busy campaigning in the assembly elections for Maharashtra and Haryana. Official sources say a plan of action is under preparation and awaits the minister's nod. Comments would also be invited from others involved such as the ministries of law and power.

In earlier communications before the SC verdict, the departments of coal and power said a 'contingency' plan for coal de-allocation was looking at new bidding norms for re-allocating blocks. In a statement issued after the August 25 judgement, Goyal had said, "Whatever is the decision of Supreme Court, we will ensure quick action to get the process once again rolling, get coal production significantly enhanced to reach the target of one billion tonnes by 2019, and ensure that every power plant in this country gets adequate coal."

"There are several points in the judgement that need to be read better. The apex court has just followed the rule of law. To translate it into an action involves deliberations from all stakeholders involved," said a government official.

The government has sought advice from the attorney general on cancellation of mining leases, and the right and title to the land purchased by the allottee companies. A draft note proposes approval of the cabinet for transfer of land acquired/notified under the Coal Bearing Areas (Acquisition and Development) Act, 1957.

"This needs to taken up on a case to case basis. A competent authority would look into which part of what Act needs to be invoked in a certain case, whether Coal Bearing Act or Land Acquisition Act. This would be possible after there is clarity on the course of action," said the official.

This would also decide how the government's near-monopoly producer, Coal India, is to proceed. It is to get all the 42 cancelled and operational blocks for maintenance till re-auction. The government has been given six months by the court to decide the way forward and give Coal India some time to adjust to the situation.