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Govt asks CIL to make plan for managing deallocated coal blocks

The coal ministry, the source said, has further advised coal block allocatees not to create any further encumbrances, including recruitment of manpower.

(Photo: Reuters) (Photo: Reuters)

The Centre has asked state-owned Coal India (CIL) to prepare a comprehensive plan for managing the coal blocks that were deallocated by the Supreme Court.

The development follows the apex court's September verdict, in which it quashed the allocation of 214 coal mines alloted to various companies since 1993 and allowed the Centre to take control of 42 such operational blocks.

"Coal India Ltd (CIL) is required to prepare a detailed comprehensive operational plan (mine wise) for managing the mine w.e.f April 1, 2015," a source close to the development said.

The source further said, "It may be required to be decided as to which coal mines out of blocks shall stand cancelled w.e.f March 31, 2015 will be vested with CIL and which will be auctioned."

The coal ministry, the source said, has further advised coal block allocatees not to create any further encumbrances, including recruitment of manpower.

"They (coal block allocatees) have been advised not to strip off assets of the coal mines during transition period i.e. up to March 31, 2015," the source said.

In a major blow to the corporate sector, the SC had quashed allocation of 214 out of 218 coal blocks alloted to various companies since 1993 terming it as "fatally flawed".

The bench, after noting the government's stand, quashed 214 allocations and asked CIL to fill the void and take things forward by taking over the operation of the 42 functional blocks.