KOLKATA (miningweekly.com) - India’s Supreme Court on Tuesday declared ‘arbitrary and illegal’ the allocation of 153 coal blocks by the federal government between 1993 and 2010.

However, the court did not deliver a verdict on de-allocation of the coal blocks and would hear the concerned parties again on September 1.

The verdict of illegal and arbitrary coal block allocation pertained to those recommended by a specified committee and not competitive bids through auctions under the auspices of governments controlled by both opposing coalition political formations - the National Democratic Alliance, presently in power and the United Progressive Alliance (UPA), in government the last two decades.

The apex court ruled that “there was no transparency by the companies, as well as the central government. On many occasions guidelines [were] breached, [and] the approach [was] casual and at times illegal."

Citing specific cases, the court ruled that “the minutes of the screening committee (set up to decide on allocation) did not disclose in what manner and on what merits the companies were chosen for recommendations; even particulars of applicants were not noticed individually”.

The court said that it was considering setting up a panel under a retired judge of the court to examine individual cases of illegal and arbitrary coal block allocation, taking into account the investments made by the firms for various projects and the procedure to be adopted for coal block cancellation.

Sources said that of the 153 coal blocks under the scrutiny of the courts, only about 30 had been operationalised, accounting for only 0.5% of the total 570-million tonnes a year of coal mined in the country.

Of the total 194 coal blocks under court review allocated during the period 1993 to 2010, the previous UPA government had de-allocated 44 leaving the rest up for legal scrutiny.

Of the total coal blocks, 121 were allocated to mining entities controlled by provincial governments and the remaining 74 to private investors.