Govt moves coal block Bill in Lok Sabha

Tribune News Service

New Delhi, March 2

The Bill to replace an ordinance brought to overcome the uncertainty in the coal sector after the Supreme Court cancelled the allocation of coal blocks was introduced in the Lok Sabha today amid opposition by the Biju Janata Dal (BJD).

The Coal Mines (Special Provisions) Bill, 2015, was introduced by Coal Minister Piyush Goyal who insisted that the government was forced to go in for the ordinance in the wake of the apex court order cancelling allocation of certain coal blocks and issuing directions with regard to those.

Opposing the introduction of the Bill, BJD leader Bhartruhari Mahtab, from Orissa said the Centre had taken certain “subjective” decisions on the issue.

He complained that his state was not taken into confidence by the Centre while deciding on “regulated” and “non-regulated” mines in the state despite Chief Minister Naveen Patnaik writing to the Prime Minister.

At the same time, Mahtab made it clear that his party was not against auctioning of the coal mines.

The government had issued the Coal Mines (Special Provisions) Ordinance 2014 on October 21, followed by the Coal Mines (Special Provisions) Second Ordinance 2014 in December.

The Coal Mines (Special Provisions) Bill 2015 provides for allocation of coal mines and vesting of the right, title and interest in and over the land and mine infrastructure together with mining leases to successful bidders and allotees through a transparent bidding process.

The main purpose of these ordinances was to overcome acute shortage of coal in core sectors and ensure energy security. These facilitated allocation of coal mines to steel, cement and power utilities which are vital for development.

The allocation of coal blocks was now being made in line with the provisions of the ordinances and rules made under them. The auction of coal blocks will be through an e-auction process in order to keep the process transparent.