Centre favours cancellation of coal blocks allocations declared illegal by SC

NEW DELHI: The government on Tuesday spoke in favour of cancellation of coal blocks allocations which were declared illegal by the Supreme Court. However, it stated that the retention of 46 blocks which are in operation or are to be operated soon should be considered.

In sum and substance, the cancellation of coal block allocation is a natural consequence, it said.

An affidavit filed by the Ministry of Coal on Monday incorporated the statements made by the Attorney General Mukul Rohtagi on September 1 that the Centre has "no objection" to the cancellation of allocations declared as illegal by the the apex court and was also not insisting on any particular course of action.

Giving details as directed by the Court about the 40 producing blocks and six likely to come under production during the year 2014-15, the affidavit said they "are estimated to produce about 50 million tonnes of Coal in the current year."

The ministry placed before it the gist of information about mining lease, commencement of production and linked End-Use Production (EUP) investment received from allocatees of these 40 productional coal mines and six on verge of production.

Out of 40 functional mines, two are allocated to an Ultra Mega Power Project (UMPP), which has not been declared as illegal by August 25 judgement, it said.

Further, the affidavit said the six coal blocks which are likely to come under production were determined by the Coal Controller's Organization (CCO), as they have received mine opening permission under Rule 9 of the Colliery Control Rules, 2004 (fr(framed under MMDR ACT, 1957), which is the final step towards opening of the mines.

The ministry, which gave details of information of 15 lignite blocks received from the allocatees, also stated some of the hurdles it was facing as a result of the apex court judgement and sought suitable directions.

It said the numbers of allocatees have acquired title of the land in respect of coal blocks which were allocated and now are held as illegal and on re-allocation those previous allocatees be directed to "re-convey" the land to Central government.

"Upon cancellation of the coal block, the title of the land would still remain with the allocatee. In the event of subsequent grant of the coal block, it may not be possible for the grantee to obtain title of the land from the earlier owner," it said.

(With inputs from PTI)