New coal law to boost economic growth, say industry leaders

NEW DELHI: Welcoming the passage of the Coal Mines (Special Provisions) Bill, 2015 in Parliament, industry today said the new law will boost economic growth as it is a shot in the arm of investors and provides certainty and clarity in the policy regime.

The crucial bill that provides legal framework for auction of coal blocks was passed by Parliament today, replacing an ordinance that was to expire on April 5.

Jindal Steel and Power Managing Director Ravi Uppal said: "We complement the government's initiative for taking the decision. It is a very forward looking step which was long overdue. It will bring transparency into the sector and open new era."

The Coal Mines (Special Provisions) Bill, 2015 was approved by Rajya Sabha after several amendments moved by the Congress and Left were defeated, on the last day of the first half of Budget session.

Lok Sabha had already passed the bill on March 4. Ficci president Jyotsna Suri said: "The legislation will herald a regime of competition, efficiency, and transparency for key natural resources by fostering fair play through market forces".

"This will strengthen the reform agenda of the government and drive the economy to higher levels of growth. It is a strong boost to the confidence of investors, who have been looking for clarity and certainty in the policy regime," Suri added.

The legislation replaces an Ordinance issued by the government on October 21 last year and then re-promulgated on December 26 after the Supreme Court cancelled allocation of 204 coal blocks terming the allocations as fatally flawed.

Passage of the bill provides legal framework for the auction of the coal blocks.

Government has already auctioned 33 blocks garnering a revenue to the tune of over Rs 2.13 lakh crore, surpassing the former CAG Vinod Rai's estimates of Rs 1.86 lakh crore loss.