{"id":35635,"date":"2014-10-21T13:55:44","date_gmt":"2014-10-21T08:25:44","guid":{"rendered":"https:\/\/www.legalindia.in\/news\/?p=35635"},"modified":"2014-10-21T13:55:44","modified_gmt":"2014-10-21T08:25:44","slug":"centre-bring-ordinance-e-auction-blocks-private-firms","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/news\/centre-bring-ordinance-e-auction-blocks-private-firms","title":{"rendered":"Centre to bring in ordinance for e-auction of blocks to private firms"},"content":{"rendered":"

The government plans to put up coal mines for bidding by private steel, power and cement companies and introduce changes in the law to enable commercial mining in the future, signalling its intent to fully open the sector to private players.<\/p>\n

<\/span><\/p>\n

The new auction-based system will replace the earlier controversial policy of allotting coal blocks based on recommendations of a panel of bureaucrats, which the Supreme Court had struck down last month as arbitrary. The Court had cancelled 214 blocks allotted since 1993, a move that threatened a nascent economic recovery.<\/p>\n

The measures, announced on Monday by finance minister Arun Jaitley and coal and power minister Piyush Goyal, follow close on the heels of labour and fuel sector reforms and are likely to go down well with markets.<\/p>\n

\u201cThe Cabinet has recommended promulgation of an Ordinance to the President in order to resolve the pending issues particularly the situation arising out of the Supreme Court judgement quashing the allocation of the coal blocks,\u201d Jaitley told a press conference after a cabinet meeting that approved the decision.<\/p>\n

Currently only steel, power and cement companies are allowed to own mines for their own use. But in the future there could be commercial use of mines, a move that would enable private companies to get into trading coal and break the monopoly of public sector monolith Coal India.<\/p>\n

\u201cThere will be an enabling provision for the future where under rules which are framed for commercial users of mines could also be decided by the Central government. This would lead to an optimal utilisation of the natural resource,\u201d Goyal said. He added that power prices could fall as a result.<\/p>\n

Jaitley vehemently denied a suggestion whether the process could be termed as \u201cde-nationalisation\u201d of the coal sector saying, \u201cThe original Nationalisation Act remains and will remain and Coal India Ltd will be fully protected.\u201d<\/p>\n

The government will allot mines directly to state-owned companies like NTPC and state electricity boards, and only companies incorporated in India will be allowed to participate in bids.<\/p>\n

\u201cThe actual users of coal in the cement, steel and power sectors who apply for a certain number of coal mines will be put in the pool and there would be an e-auction. A sufficient and adequate number of mines would be put so that actual users go back with the mines,\u201d Jaitley said.<\/p>\n

\u201cThe entire mess that the UPA had left behind from 2005 onwards over the next four months would be cleaned up,\u201d he said, adding coal worth $20 billion (about Rs. <\/span>1.26 lakh crore) which was being imported annually would be domestically substituted through this measure.<\/p>\n

Coal-rich states Jharkhand, Odisha, West Bengal and Chhattisgarh, Madhya Pradesh, Maharashtra and Andhra Pradesh would make big fiscal gains from the auctions, a fact that could endear the ruling BJP to the electorate in any of those states going to assembly polls in the next few years.<\/p>\n

India\u2019s estimated coal reserves now stand at 301 billion tonnes, the fifth highest in the world, but companies still have to import as large number of mines remain unused.<\/p>\n

More than half of India\u2019s power is produced from coal. State-owned Coal India, accounts for nearly 80% of the country\u2019s coal output, but it isn\u2019t enough to meet India\u2019s rising energy demand.<\/p>\n

India\u2019s coal imports jumped more than three times in the last eight years\u2014from 41.2 million tonnes in 2005-06 to 140.6 million tonnes in 2012-13.<\/p>\n

The previous UPA government had come a under relentless attack after India\u2019s national auditor Comptroller and Auditor General (CAG) in a report in 2012 suggested that the arbitrary allocation of coalfields may have robbed the exchequer of potential revenues of Rs. <\/span>1.86 lakh crore between 2004 and 2011.<\/p>\n

\u201cWe sincerely hope that benefits of the auction of coal blocks will go to actual users and percolate down to the consumers. At the same time, we also caution the government to weave in necessary parameters and safeguards to ensure these benefits reach the ultimate consumers,\u201d Congress spokesperson Randeep Singh Surjewala said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The government plans to put up coal mines for bidding by private steel, power and cement companies and introduce changes in the law to enable commercial mining in the future, signalling its intent to fully open the sector to private players. The new auction-based system will replace the earlier controversial policy of allotting coal blocks […]<\/p>\n","protected":false},"author":1,"featured_media":34905,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[20124],"tags":[30187,22179,30188,30186,30184,30185],"class_list":["post-35635","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-court-judiciary-legal-system","tag-arbitrary-allocation-of-coalfields","tag-coal-blocks-allocation","tag-coal-blocks-issue","tag-congress-spokesperson-randeep-singh-surjewala","tag-e-auction-of-blocks","tag-the-original-nationalisation-act"],"yoast_head":"\nCentre to bring in ordinance for e-auction of blocks to private firms - 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During its hearing on the coal blocks allocation scam on August 25, the apex court held that all the coal blocks allocated by the Centre since 1993\u2026","rel":"","context":"In "Court, Judiciary & Legal System"","block_context":{"text":"Court, Judiciary & Legal System","link":"https:\/\/www.legalindia.com\/news\/category\/court-judiciary-legal-system"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2014\/08\/coal-is-king.jpg?fit=620%2C350&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2014\/08\/coal-is-king.jpg?fit=620%2C350&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2014\/08\/coal-is-king.jpg?fit=620%2C350&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":31625,"url":"https:\/\/www.legalindia.com\/news\/centre-reply-sc-re-examining-allocation-coal-blocks","url_meta":{"origin":35635,"position":1},"title":"Centre to reply to SC on re-examining allocation of coal blocks","author":"Legal India Admin","date":"January 9, 2014","format":false,"excerpt":"The central government will Thursday inform the Supreme Court whether it was inclined to re-examine the 32 coal blocks -- allocated after 2006 to private companies by the screening committee of the coal ministry -- that are core to the coal block allocation scam. \"If you are going to cancel\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"aa","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2014\/01\/aa6-150x100.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":36887,"url":"https:\/\/www.legalindia.com\/news\/hc-junks-sarda-plea-against-two-phased-coal-auction-process","url_meta":{"origin":35635,"position":2},"title":"HC junks Sarda plea against two-phased coal auction process","author":"Legal India Admin","date":"February 18, 2015","format":false,"excerpt":"Delhi High Court today lifted the stay on final bidding for three Chhattisgarh coal blocks and dismissed a plea of Sarda Energy and Minerals Ltd's challenging the two-phased coal auction process saying it was not arbitrary or irrational. A bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva said the\u2026","rel":"","context":"In "Consumer Law News"","block_context":{"text":"Consumer Law News","link":"https:\/\/www.legalindia.com\/news\/category\/consumer-law-news"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.legalindia.com\/news\/wp-content\/uploads\/sites\/2\/2015\/02\/coal-scam.jpg?fit=310%2C233&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":30166,"url":"https:\/\/www.legalindia.com\/news\/ngo-asks-sc-cancel-coal-block-allocations","url_meta":{"origin":35635,"position":3},"title":"NGO asks SC to cancel all coal block allocations","author":"Legal India Admin","date":"September 13, 2013","format":false,"excerpt":"The Supreme\u00a0Court\u00a0should cancel all the coal blocks allocated to private and public sector companies in a non-transparent and unfair manner and in violation of rules, a petitioner said Thursday. Petitioner NGO Common Cause has sought the cancellation of coal blocks allocated to state-owned companies which had in turn entered into\u2026","rel":"","context":"In "Top Law News"","block_context":{"text":"Top Law News","link":"https:\/\/www.legalindia.com\/news\/category\/top-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":26633,"url":"https:\/\/www.legalindia.com\/news\/irregularities-in-coal-blocks-allocation-cbi-tells-sc","url_meta":{"origin":35635,"position":4},"title":"Irregularities in coal blocks allocation: CBI tells SC","author":"Legal India Admin","date":"January 25, 2013","format":false,"excerpt":"Investigations in the coal block allocations have established irregularities by government authorities in allocation of the natural resources and around 300 companies are under its scanner, the CBI said to Supreme Court. In an affidavit filed before the apex court, the agency told that it is taking up the probe\u2026","rel":"","context":"In "Corporate Law News"","block_context":{"text":"Corporate Law News","link":"https:\/\/www.legalindia.com\/news\/category\/corporate-law-news"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":36261,"url":"https:\/\/www.legalindia.com\/news\/sc-rejects-plea-challenging-coal-ordinance","url_meta":{"origin":35635,"position":5},"title":"SC rejects plea challenging Coal Ordinance","author":"Legal India Admin","date":"December 19, 2014","format":false,"excerpt":"The Supreme Court Thursday dismissed a plea challenging the ordinance on coal blocks, providing for retrospective recovery of a levy of Rs. 295 per metric tonne of extracted coal and linking its payment as a qualification to participate in the cancelled . The Coal Mines (Special Provision) Ordinance, 2014, was\u2026","rel":"","context":"In "Court, Judiciary & Legal System"","block_context":{"text":"Court, Judiciary & Legal System","link":"https:\/\/www.legalindia.com\/news\/category\/court-judiciary-legal-system"},"img":{"alt_text":"coal","src":"https:\/\/i0.wp.com\/www.legalindia.in\/news\/wp-content\/uploads\/2014\/12\/coal.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"jetpack_shortlink":"https:\/\/wp.me\/p6H5Bf-9gL","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/35635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/comments?post=35635"}],"version-history":[{"count":0,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/posts\/35635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media\/34905"}],"wp:attachment":[{"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/media?parent=35635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/categories?post=35635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalindia.com\/news\/wp-json\/wp\/v2\/tags?post=35635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}