SC verdict on coal block allocation provides an opportunity to reform the entire mining sector: CSE

The verdict follows the apex court’s earlier pronouncement on August 25, in which the court had said that all 218 coal blocks allocated between 1993 and 2010 are illegal as they have been allotted in an “ad hoc and casual” manner by the Centre.

In its most recent judgment, the court has pointed out that its “proceedings are intended to correct the wrong done by the Union of India…. it is expected that the government will not deal with the natural resources that belong to the country as if they belong to a few individuals who can fritter them away at their sweet will.”

Commenting on the verdict, Centre for Science and Environment (CSE) deputy director general Chandra Bhushan, who also heads CSE’s sustainable industrialisation programme, said: “The Supreme Court’s observations give us the opportunity to evaluate what can be the most transparent and competent way to allocate a high value natural resource such as coal for mining purposes and ensure its efficient use.”

He added: “In fact, the court’s intervention provides an excellent opportunity and window to initiate reforms in the entire mining sector. The issue of appropriate allocation and extraction of mineral resources and the unfair distribution of costs and benefits realised from such resource extraction is a long standing controversy. Mining in India suffers from multiple problems. Most mining areas are very poor (most mining districts being the poorest) and have major environmental problems (most mining areas are also critically polluted), and there is illegal mining happening across the country.”

Said Bhushan: “The regulatory system concerning mining (including coal) should not be perceived as a mechanism for aiding mining, but as a cornerstone that can ensure a sustainable mining future, balancing the needs of the people, the environment and the economy.”