The Government standing by Apex Court’s 25th August Judgment, is planning to re-auction all 218 coal blocks declared as “illegal allocation”, but before doing so, has sought Supreme Court (SC)’s indulgence to 'exempt' 40 of coal blocks which are functional and ready for the end use power plants.
The Attorney General, Mukul Rohatgi, representing the stand of the Narendra Modi Government before a bench headed by Chief Justice RM Lodha, highlighted that there was a need for saving 40 coal blocks from “guillotine of cancellation” as uncertainty of coal availability would affect the plants at a time when the country is facing acute shortage of power supply.
However, the Attorney General underscored the 40 mines that should be exempted from cancellation and re-auction, provided these mines meet the condition of compensating the loss of Rs 295 per tonne caused to the government and enter into a power purchase agreement at Rs 95 per tonne to make up the loss. Further, he asserted that the government was not in the favour of setting up of any committee comprising its retired judges as suggested by the apex court to analyse the consequences of the verdict on the allocation which has been held as illegal.
The apex court had on 25 August held that all coal blocks allocated during the last 17 years since 1993 by various regimes at the Centre were done illegally and arbitrarily, bringing uncertainty to the fate of 218 block allocations and consequential investments to the tune of around Rs 2 lakh crore.
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