lok Sabha on Friday passed the bill to facilitate fresh auction of 204 coal blocks cancelled by the Supreme Court, amidst the apprehensions of Opposition parties and BJD that the legislation would lead to privatisation of the sector. The Coal Mines (Special Provisions) Bill, which replaces and Ordinance promulgated in October, was passed by voice vote overcoming demands by some opposition parties it be sent to the Parliamentary Standing Committee for closer scrutiny.
Replying to the debate, Coal Minister Piyush Goyal said concerns raised by some members that the new legislation would pave the way for de-nationalisation or privatisation of the coal sector was not correct. "We are in fact strengthening" the Public Sector Undertaking Coal India limited, he said. Contending that new law will encourage transparency as allocation would be made through e-auction, he said the effort was to undo the damage caused during the previous UPA Government when coal blocks were "given free".
The Bill provides for "allocation of coal mines and vesting of the right, title and interest in and over the land and mine infrastructure, together with mining leases, to successful bidders and allottees through a transparent bidding process".
Members from parties like Congress, Trinamool Congress, BJD and left demanded that the bill should be referred to the Standing Committee for a thorough scrutiny.
The ordinance was issued in October to facilitate auctioning of the cancelled blocks and the first round would see auction of 74 blocks. Referring to concerns raised by members about coal production in the country, Goyal said Coal India limited has the potential to produce one billion tonnes of coal.
Congress MP Jyotiraditya Scindia specifically attacked the bill on various points including the aspect related to ownership of lands where coal blocks were allotted.
Scindia, who was the Power Minister in the UPA Government insisted that the bill "makes a mockery of the Supreme Court ruling". Pitching for differential coal block allocation system. He said there should be price ceiling and reverse auction for regulated entities. Congress leader pointed out there were series of lacunas in the ownership of lands where coal blocks were allotted.