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This is an archive article published on November 26, 2013

Can’t be bound by states’ opinion in all cases,says Centre

It was imperative for the central government to take a lead in the allocation process.

Asserting its “lead” role in allocation of coal blocks to entities,the Centre told the Supreme Court Monday that it could not be bound by the recommendations of the state governments in all cases since it had to take care of the requirement of the country as a whole.

“It was imperative for the central government to take a lead in the allocation process. This is because coal is a resource of national importance but it is primarily concentrated in seven states. If the power to allocate coal blocks had been left to the states then state governments might have allotted coal blocks to companies with end-use plants located in such states,” said the Coal Ministry’s affidavit.

The affidavit has been filed in reply to the stand taken by the seven mineral-rich states — Jharkhand,Chhattisgarh,Orissa,Maharashtra,Andhra Pradesh,Madhya Pradesh and West Bengal — over their role in allocation of coal blocks amid the Centre’s claim it merely identified suitable blocks and the states had executed the leases.

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The ministry has pointed out the Centre had to take a lead role in allocation of coal blocks while states’ views were taken into account by the Screening Committee. “It is obvious the central government’s decision on allocation had to be final,and that it could not be bound by the recommendations of the state governments in all cases because the states may not have allowed coal blocks in their states to be allotted for end-use plants in other states,” it said.

The Centre asserted that none of the states in their affidavits had agreed with the contentions made by PIL petitioners advocate M L Sharma and NGO ‘Common Cause’ that allocations made from 1993 onwards were arbitrary or unlawful or that the government did not have the power to constitute the Screening Committee.

The ministry also sought to junk the objections raised by governments of Orissa and Maharashtra against the allocation process. Orissa had alleged that the Centre brazenly violated the existing legal framework by unilaterally allocating coal blocks bypassing the views of the states. It also accused the government of exercising “pervasive control” in the matter of allocation of coal block and consequently grant of mining lease. Maharashtra also raised its grievances over lack of discretion on the part of the states to reject applications as well as its inability to impose any further condition.

The Centre however has refuted the allegations,saying representatives from states were always called for the meetings of the Screening Committee when applications were taken up and they were also asked for specific inputs on certain occasions.

The court will take up the matter Tuesday.

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