The Ministry of Coal had selected 11 private companies for the allocation of captive Coal blocks in 2007-2008, without any recommendation from the power ministry.

The Government has submitted a list of 11 private companies to the Supreme Court which were allocated for captive Coal blocks for their end-use projects. Those 11 firms were chosen without their participation in a selection process. Selection process includes approval from Ministry of Power & State Government which were only two routs for the selection of aspirants.

The 11 companies are: Reliance Energy, Tata Power, Balco, SKS Ispat & Power, Prakash Industries, Green Infrastructure, Visa Power, Vandana Vidyut, GVK Power, Gagan Sponge Iron, and Lanco Group Ltd.

The fact that only 20 companies were found eligible for Coal blocks allocation out of 178 in 2008 by the 35th meeting of the screening committee. The process followed by the Coal ministry was extremely strict, but another 11 companies were cleared by the same committee without being subjected to the same screening process.

The 20 found appropriate were: Monnet Ispat & Energy, Jindal Photo, DB Power, AES Chhattisgarh, Essar Power, Bhushan Power & Steel, Adani Power, Tata Steel, Adhunik Thermal Energy, Mittal Steel India, Sterlite Energy, GMR Energy, Navbharat Power, JLD Yavatmal Energy, RKM Powergen, Jindal Steel & Power, CESC, Jas Infrastructure, Himachal Emta Power, and JSW Steel.

The eight companies rejected by the screening committee were: Rashmi Cement, TRN Energy, Maithon Power, Mahabir Global Company, Rasa Power Company, Bhushan Energy, Lanco Amarkantak, and Vedanta.

On Wednesday, a three-member bench of Justices R M Lodha, Madan, B Lokur and Kurian Joseph asked to Attorney General of India GE Vahanvati to place all the names and procedure adopted for Coal block allocations before the court.

The Central Government also submitted to the SC the list of allottees selected by the screening committee in its 32nd, 33rd, 34th and 36th meetings after the court asked for the procedure followed for shortlisting of applicants.

The bench on Thursday said, “We have to understand how the allocation mechanism is brought in and how it is sanctioned by Mines & Mineral (Development and Regulation) Act and Coal Mines Nationalization Act.”

– sourced