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Coal block auction process would not be delayed despite HC orders: Piyush Goyal

12 Feb 2015 Evaluate

Union Coal Minister Piyush Goyal after the Delhi High Court asked for removal of three coal blocks from the auction list, has said that the government respects the ruling and assured that the auction process would not be delayed. The court orders were seen as big blow to the government, planning an early coal block auction, though Coal secretary Anil Swarup asserted that this was not a setback to the auction process as these blocks were not part of the 23 being bid out in the first phase.

Earlier, a Delhi High court bench of justices Badar Durrez Ahmed and Sanjeev Sachdeva hearing on the plea of Jindal Steel & Power (JSPL) which had challenged the government decision to change the end use for the Utkal B1 coal block in Odisha and Gare Palma IV/6 in Chhattisgarh to power from steel, took out Utkal B1 and B2 blocks and Gare Palma IV/6, from the auction process, saying that while changing end-use of these blocks to power sector, the aspect of its adverse impact on steel sector has not been considered. The government on its part had contended that end-use of both blocks was changed in view of the energy security of the country. JSPL had been allocated Utkal B1 for operating a steel unit and Gare Palma IV/6 for a sponge iron industry.

The court disagreeing with the government's reason for changing end-use, said the expression “energy security of the country” refers to the coal reserves and not to the power sector and added that power can be generated through various other sources - water, wind, nuclear, solar, etc. The High Court Bench  also directed the committee, which had been set up to classify coal blocks as well as formulate criteria for their auction and allotment, to review its decision to merge Utkal B1 and B2, saying 'there was no application of mind'.

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