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Law ministry views sought on coal blocks

The Supreme Court had last month quashed allocation of 214 out of 218 coal blocks allotted to various companies since 1993

Press Trust Of India New Delhi
In the light of the Supreme Court's observations, the coal ministry has sought clarifications from the law ministry on various issues, including whether de-allocated mines can be allotted to state public sector undertakings (PSUs) and new end-use plants.

The development follows the quashing allocation of 214 blocks to various companies since 1993. A source said clarifications had 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 might not be engaged in the business of end-uses at the time of allotment.
 

The Supreme Court had last month quashed allocation of 214 out 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 have been invested in 157 coal blocks and Rs 4 lakh-crores in end-use plants.

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First Published: Oct 03 2014 | 12:43 AM IST

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