The union cabinet strongly recommended for the promulgation of an ordinance to acquire back the land of 214 coal blocks mines on Monday. The Supreme Court has already pointed out that 218 coal blocks that have been allotted by the center since 1993 is illegal.
In a historical movement, the Supreme Court cancelled all coal blocks, excluding four coal blocks which have been reserved for the allocation of state and central public sector units like National Thermal Corporation and State Electricity Boards.
It has been pointed out that Monday’s decisions would never disturb the basic structure of Coal India. The expedient disposal makes room for a high impact to the manufacturing sector that enables India to save considerable foreign exchange on coal imports.
Though India is surplus with coal, it was importing coal worth of $ 20 billion per year. The extract from the e-auction will go straightaway to state governments where the coal mines are located. It would further enable the respective state governments to bring Improvement in their financial status.
Mr. Jaitly pointed out the fact that in the first phase of e-auction, only end-users will be eligible to bid for captive mines and trading in coal will be barred. Mr. Jaitly also declared, that the land that is to be acquired back from the owners of mines, will be valued by an independent authority under the Coal Nationalization Act.