Cabinet clears Bill to replace Ordinance sought to commence auction of coal mines cancelled by Apex Court

The Union Government today cleared a Bill to replace the Coal Mines (Special Provisions) Ordinance, 2014 that had been promulgated to begin auction of coal mines that were cancelled by the Supreme Court. The Supreme Court had in September cancelled allocation of 204 coal blocks, including 42 operational mines and another 32 ready-to-start blocks. Government through the ordinance started the process of auctioning at least 74 operational or ready-to-operate blocks with the target of allocating them by March, well before the deadline set by Supreme Court for companies operating the mines to wind up operations.

The Bill to replace the Coal Mines (Special Provisions) Ordinance, 2014 is likely to be brought before the Parliament during the ongoing winter session.

Meanwhile the Government has already specified that the 74 coal mines, which the Government plans to auction to specific end-users in the first phase of bidding on February 11, will not require any green clearances. The auction will be for the private sector, while state-owned companies will get mines via allotment. These blocks have a potential to produce 210 million tonnes of coal. The number of mines a company can bid in the proposed auction will however be capped to avoid creation of a monopoly.