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english legal test 10 (English)
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Legality and Constitutionality of allocation of coal blocks for the period 1993 to 2010. Two PIL., one by Manohar Lal Sharma and another by Common Cause were filed before the supreme Court alleging that the allocation of coal blocks made during the period of 1993 to 2010 by the Central Government is illegal and unconstitutional. The petitioners mainly prayed for quashing the entire allocation of coal blocks made to private companies by the Central Government between 1993 and 2012 and a court monitored investigation by the Central Bureau of Investigation and Enforcement Directorate or by a Special Investigation Team into the entire allocation of coal blocks by the Central Government made between the above period covering all aspects.Coal is king and paramount Lord of industry is an old saying in the industrial world. In India, coal is the most important indigenous energy resource and remains the dominant fuel for power generation and many industrial applications Coal can help significant economic growth. India's energy future and prosperity are integrally dependant upon mining and using its most abundant, affordable and dependant energy supply which is coal. It is no exaggeration that coal is regarded by many as the black diamond. Being such a significant, valuable and important natural resource, it is alleged in these writ petitions filed in the nature of Public Interest Litigation that there were illegality, arbitrariness, mala fides and corruption in the allocation of coal blocks by the for the period 1993 to 2010.The allocation of coal blocks through Government dispensation route, however laudable the object may be, also is illegal since it is impermissible as per the scheme of the Coal Mines (Nationalisation) Act, 1973. No State Government or public sector undertakings of the State Governments are eligible for mining coal for commercial use. Since allocation of coal is permissible only to those categories under section 3 (3) and (4). The joint venture arrangement with ineligible firms is also impermissible. Equally, there is also no question of any consortium/leader/association in allocation. Only an undertaking satisfying the eligibility criteria referred to in section 3(3) of the Coal Mines Nationalisation Act, 1973 viz., which has a unit engaged in the production of iron and steel and generation of power, washing of coal obtained from mine or production of cement, is entitled to the allocation in addition to Central Government, a Central Government company or a Central Government corporation.The Mines and Minerals Development and Regulation Act, 1957 has been amended introducing section 11 A with effect from 13.02.2012. As per the said amendment, the grant of reconnaissance permit or prospecting licence or mining lease in respect of an area containing coal or lignite can be made only through selection through auction by competitive bidding even among the eligible entities under section 3(3) (a) (iii). However, Government companies, Government corporations or companies or corporations, which have been awarded power projects on the basis of competitive bids for tariff including Ultra Mega Power Projects have been exempted of allocation in favour of them is not meant to be through the competitive bidding process.It is not the domain of the Court to evaluate the advantages of competitive bidding vis-à-vis other methods of distribution/disposal of natural resources. However, if the allocation of subject coal blocks is inconsistent with article 14 of the Constitution and the procedure that has been followed in such allocation is found to be unfair, unreasonable, discriminatory, non-transparent, capricious or suffers from favouritism or nepotism and violate of the mandate of article 14 of the Constitution, the consequences of such unconstitutional or illegal allocation must follow. Nothing should be read in the Mines and Minerals Development and Regulation Act, 1957 the Coal Mines Nationalisation Act, 1973 which results in destruction of the policy, purpose and scheme of the two Acts.
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