Entertaining JSPL plea to affect coal block auction: Govermment to Delhi High Court

NEW DELHI: Govermment today opposed in Delhi High Court the pleas of JSPL and its promoter Naveen Jindal challenging its order changing end-use of coal blocks earlier alloted to them, saying the decision was taken to ensure optimal use of reserves of the natural resource.

"Entertaining the plea will result in stunting the entire process undertaken subsequent to apex court verdict," Attorney General Mukul Rohatgi submitted before a bench of justices B D Ahmed and Sanjeev Sachdeva.

The AG contended that the Supreme Court while cancelling the coal blocks had made it clear that there cannot be any link with the past.

Hence, Jindal Steel and Power Ltd's (JSPL) contention, that change of end-use would affect its Rs 20,000 crore investment in a steel unit, is "wiped out", he said.

The Centre was responding to the petition in which JSPL contended that it was allocated coal blocks in Odisha and Chhattisgarh for the setting up steel and sponge iron production units respectively, and changing the end-use has resulted in making it ineligible to participate in the ongoing auction process which is expected to culminate on February 14.

Rohatgi made it clear that while cancelling the coal blocks, the apex court had said not to look at prior allocation or the investment made on the same as the process of allocation was "fundamentally flawed, illegal and arbitrary".

Senior advocate Kapil Sibal, appearing for the JSPL and Jindal, opposed the submissions, saying the aspect of auction of coal blocks was never contemplated by the apex court.

"Auction was never contemplated by the apex court as the point was never put before it. The government had contended that Coal India Ltd (CIL) will fill the void and take things forward," Sibal said.

The AG said the decision to change end-use as well as merge some coal blocks, as was done in the case of Utkal B1 and B2 in Odisha (allotted to JSPL), was taken on the basis of the recommendations of a high powered committee.