Government Ready to Auction Coal Blocks, Seeks Exceptions

He argued that the allottees who have done nothing wrong could not suffer if the government went wrong and its methodology of allocation was wrong. He said cancellation would create problem even for the banks as there would be a default and it would affect their non-performing assets (NPA).

Favoring the auction of the coal blocks, whose allocation was held illegal, the court said that existing allottees would get preference to match the bid otherwise "good luck and goodbye".

Noting that seven percent of the total coal requirements of the industry, be it power, steel or cement, is met from the indigenous source, the court said: "It is not going to make much difference. It is better that we start with a clean slate... government does as far as possible, leaving 46 coal blocks. 93 percent is the total deficiency. Let us all help remove darkness bit by bit."

The government opposed the court's earlier suggestion to set up a committee headed by a retired apex court judge to go into the decision's consequences.

The apex court by its Aug 25 verdict had said: "As we have already found that the allocations made, both under the screening committee route and the government dispensation route, are arbitrary and illegal, what should be the consequences, is the issue which remains to be tackled. We are of the view that, to this limited extent, the matter requires further hearing."

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