Jharkhand govt moves SC on Centre's decision to auction coal blocks for commercial mining

The Jharkhand government has moved the Supreme Court challenging the Central government's decision to unveil the process for virtual auction of coal blocks for commercial mining. The state government has moved a writ petition on Friday contending that the decision to auction the coal blocks, few of which are in Jharkhand, will not benefit the state amid the ongoing COVID-19 pandemic.

The plea filed by Advocate General Rajiv Ranjan stated that the state will incur losses as it would not fetch the market price. No proper assessment related to the adverse impact on a large tribal population and forests has not been done yet, additionally a detailed study covering all aspects of the decision is also required, Ranjan said.

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This comes in the backdrop after Prime Minister Modi earlier this week launched the auction of 41 coal mines for commercial mining and reiterated his call for India to become self-reliant in energy by reducing imports. The virtual auction process for 41 coal blocks for commercial mining is expected to garner Rs 33,000 crore of capital investment in the country over next 5-7 years, the prime minister said.

India is the second-largest importer of coal and the rollout of commercial coal mining is part of the series of announcements made by the Centre under the Atmanirbhar Bharat Abhiyan. The Coal sector is expected to increase the private sector participation which will, further lead to higher production and enhance competition in the market.

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(With inputs from ANI)