Prez nod to coal e- auction

New Delhi, Oct. 21: The Ordinance to auction coal blocks through an electronic platform got the President’s approval on Tuesday, paving the way for a “transparent” allocation process for mines to the private sector, even as trade unions and Left parties opposed the move.

The long- awaited “reforms” in the sector, a departure from the existing practice of allocation by a screening committee mechanism, got the go- ahead from President Pranab Mukherjee, who promulgated the Ordinance cleared by the Union Cabinet last evening.

The Ordinance was warranted in the backdrop of the SC’s order quashing 214 coal blocks allocated to various companies since 1993 on the ground that they were done in an illegal manner by an “ad- hoc and casual” approach “without application of mind”.

Industry bodies hailed government’s move and termed it as a step in the right direction.

“This is an important decision and highlights the government’s seriousness to reform the coal sector. Through this move, the government has arrested concerns pertaining to diminishing coal supplies,” Ficci president Sidharth Birla said.

“The air of uncertainty has been resolved and clear roadmap has been put forward. CII believes that quick decision- making by the government sends the right signals,” CII DG Chandrajit Banerjee said. Trade bodies representing four lakh coal workers on Tuesday said they oppose e- auction as well as the enabling provision in the proposed Ordinance.