SC rejects review petition on coal de-allocation

The Supreme Court on Monday dismissed nearly 20 applications of power and steel companies seeking exemption from its judgment which cancelled 204 coal mining licences issued since 1993.

Jindal Steel & Power, Essar, Monnet Ispat and other noted companies involved in power, steel and cement business requested the Supreme Court to review the decision of cancelling the coal block allocations made to them.

The firms submitted before the Bench headed by Justice Madan Lokur that they were legally allotted the licences and tried to convince the court that their licences were valid and free from all taints. However, the judges were not inclined to review the earlier judgment delivered by another three-judge bench in September.

In its order dated 24 September, the Supreme Court cancelled all but four coal block allocations made by the government-appointed screening committee over the past two decades citing them to be "illegal, unconstitutional and without application of mind".

Out of 216 allocations, 105 were made to private companies, 99 to government companies and 12 allocations were made to ultra-mega power projects (UMPPs).

The court also dismissed applications of another batch of firms which argued that they were underground mines and they were not covered by the September judgment.

Meanwhile, a writ petition has been filed challenging the recent Coal Mines (Special Provisions) Ordinance 2014. The Ordinance which was issued in October is scheduled to be introduced as a Bill in Parliament shortly. The law enables the government to auction the coal blocks cancelled by the Supreme Court and allows private players to mine coal and sell it in open market. So far, commercial mining was the monopoly of the government-owned Coal India. According to the Supreme Court judgment, the government can auction all cancelled coal blocks at the end of March next year.