Government Ready to Auction Coal Blocks, Seeks Exceptions

NEW DELHI: The government told the Supreme Court that they stood by its verdict holding allocation of coal blocks since 1993 as illegal, and was ready to auction these blocks if they are cancelled but sought exceptions for some mines which were operational.

Telling the court that the government wasn't oblivious to the hardship of the court's declaration being taken to its local conclusion, Attorney General Mukul Rohatgi said: "We stand by the judgment and (taking) auction (route for their reallocation)".

He, however, urged the bench of Chief Justice R.M. Lodha, Justice Madan B. Lokur and Justice Kurian Joseph to consider making exceptions in the case of 46 coal mines out of which 40 are already operating and six are ready for operations and their end-use plants are also in place.

The court was told that there were 218 coal blocks that came under its scanner. Of this, 80 were cancelled by the earlier government and exemption sought for 46.

Endorsing the position taken by the attorney general, the court said: "Best way is what Rohatgi says, that is auction. The process (of allocation of coal blocks) has been held illegal at every stage and in every form and you (allottees of coal block) can't take advantage of it."

"They (the government) don't mind if entire 218 coal blocks go under the hammer," it said as senior counsel K.K. Venugopal, appearing for the miners, urged the court to balance different interests including public, national and that of the allottees.

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