Even as captive coal miners plan to move court to safeguard their blocks in the wake of cancellation orders issued by an inter-ministerial group (IMG), their fate hangs in the balance in the wake of a Supreme Court (SC) judgment cancelling blocks allocated to private companies.
The IMG has, so far, de-allocated more than 25 coal blocks that were reviewed earlier this month. The SC has already made an oral observation, questioning the allocation of blocks through a screening committee.
In 2012, Common Cause, an NGO, had filed a public interest litigation (PIL), demanding the cancellation of all coal blocks and a probe by a special investigation team (SIT) into the allegedly arbitrary and non-transparent manner in which the blocks were allocated, purportedly causing huge loss to the public exchequer.
According to reports, private companies like JSPL Monnet Ispat plan to move court against the decision of IMG to de-allocate coal blocks for not starting production on their mines despite a lapse in the prescribed time period.
"If the SC decides in our favour, then companies going to the HC for getting a stay on the order of the IMG would not be able to save their mines, as we have sought the cancellation of all blocks," said senior lawyer Prashant Bhushan.
Private companies believe since they have made significant investments on the blocks and since most of the delays were caused by environment and forest department clearances, they will be able to save their blocks.
"The SC judgement is concerned with the allocation of blocks to private companies. While some blocks may be cancelled on that ground there are blocks that were obtained judiciously and have been cancelled on account of the failure of the government to provide clearances to companies," said Mukul Rohtagi, counsel for Tata Asol, whose coal block has been de-allocated by IMG.
In some blocks such as Fatehpur, allocated to SKS Ispat and Power and Prakash Industries, SKS Ispat had invested ?2,486 crore in its end-use plant.
The Rampia block, allocated to Sterlite Energy, GMR Energy, Arcelor Mittal, Lanco Group, Navbharat Power and Reliance Energy, is in a similar situation. Here, Sterlite has invested ?8,287 crore, GMR, ?5,600 crore and Lanco ?4,800 crore to set up end-use plants. The Sterlite and GMR plants have been commissioned.
The government's move follows Attorney general G E Vahanvati informing the SC last month that nearly 61 coal blocks allocated to private companies would be taken back if they did not obtain environmental clearances within six weeks.
The inter-ministerial group will meet again on February 25 to consider stage-II forest clearances of other blocks.
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