Though the Supreme Court has directed Coal India ltd (CIl) to take over the control of 42 cancelled coal blocks after March next year, lack of clear direction from the Coal Ministry has led to uncertainty on various key aspects. These include whether the Maharatna company will have to make any kind of payment to block holders and will the supply from these reserves be limited to only their end-use purpose, or will it be used for other industries too.
Also CIl is not sure as to for how long will these blocks remain under its control. If the Government in future decides to auction them, then this will not leave CIl with much space to utilise them gainfully, sources pointed out. According to sources close to the development, CIl is still awaiting a clear action plan from its nodal Coal Ministry which will help answer these aspects.
"Some kind of payment will have to be made to the block holders, a compensation amount, and this can be possible through nationalisation of these mines," an official aware of the developments told The Pioneer.
In the early 1970s when the Centre had taken over the coal mines across the country from various private entities, it had nationalised them and a similar exercise could take place this time also when the 42 blocks are taken over by CIl.
Another aspect is related to the usage of coal extracted from these cancelled blocks. Sources pointed out that this is again linked to a clear and proper direction from the Coal Ministry.
The Supreme Court while cancelling 42 operating coal blocks, had given them time till March 31, 2015 to wind up their operations. Subsequently, it had said that CIl will take over their operations.
Here the question has arisen as to whether this control will for a long term basis or will CIl have to surrender the blocks once the Government decides to auction them.
While the Coal Minister Piyush Goyal is yet to react on the Supreme Court's September 24 verdict of cancelling 214 out of the 218 blocks allotted between 1993 and 2010, sources close to him had indicated that an action plan is being framed to look into the fallout of the decision.
However in the absence of any direction from the ministry, CIl has no option but to wait for the aforementioned action plan, which it is hoping, will answer the unclear aspects arising out of the apex court's judgement.