Coal news and updates

SC rejects pleas against Coal Ordinance

Giving a green signal to the Centre to go ahead with the auctioning of coal mines across the country, the Supreme Court on Thursday dismissed petitions challenging the government's Ordinance for fresh allocation of coal blocks.

A three-judge bench headed by Justice Madan B Lokur pleas against the ordinance filed by two firms including the Calcutta Electric Supply Corporation (CESC) Ltd. It also allowed for withdrawal of a similar plea after the lawyer submitted to approach before the concerned high court.

The apex court also rejected separate pleas of three companies including Jindal Steel and Power Ltd (JSPL) which sought court to allow it for participation in auction without paying the penalty amount of approximately Rs 1796 crore at the rate of Rs 295 per metric ton. The JSPL pleaded for extension of time from December 2014 to June 2015 and to pay it in installments.

The JSPL alleged that one of the clauses of the recent Ordinance bars a firm from taking part in the auction process if it does not pay the penalty within the stipulated time fixed by the Supreme Court in its verdict in September.
Appearing for the firm, senior advocate AM Singhvi told the bench that "The idea was to collect the penalty and not to create a situation where we cannot pay."

Attorney General Mukul Rohatgi, appearing for the Centre, opposed saying "They have come at the last moment. This is misconceived."

After which, the bench rejected JSPL's plea. The court also rejected the plea of Mumbai-based BLA Industries Pvt Ltd which sought exclusion from the ambit of the court's September verdict which held the allocation of coal blocks illegal.

The court had quashed allocation of 214 out of 218 coal blocks allocated to various companies since 1993 and allowed the Centre to take over operation of 42 such blocks which are functional.

Source: DNA