August 31, 2014
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CITU, Workers' Federation Hail SC Judgement on Coal Block Allocations

THE Centre of Indian Trade Unions (CITU) and the All India Coal Workers Federation (AICWF) have welcomed the Supreme Court judgement declaring all coal block allocations since 1993 illegal on grounds of gross lack of transparency and fairness, exercise of arbitrariness and violation of guidelines, causing huge loss to the public exchequer as well as to the consumers both in industry and the common people.

The CITU has said such irregularities and corrupt practices since 1993 in coal block allocations for captive use under almost all successive central governments vindicate the inbuilt, corruption-prone character of the neoliberal policy trajectory. In fact, the legislation amending and/or diluting the Coal Mines Nationalisation Act, to permit such allocation of coal blocks to specific industry for captive use, has been proved to be self-defeating and opened the floodgate of rampant exercise of unfair arbitrariness and discretion in such allocations particularly to private sector giving rise to such huge scam. None of governments at the Centre since 1993 can wash off its hands from the responsibility of such scam and irregularities.

It should also be noted that out of the over 200 coal blocks allocated for captive use since 1993, hardly 30 blocks could be brought under operation during these 21 long years, which also comprehensively proved the total inefficacy and impracticability of the very scheme of such allocations for captive purpose, thereby warranting scrapping of the concerned enabling legislation.

The CITU is of the firm opinion that the allocated coal blocks should come back to Coal India Ltd, and Coal India should be empowered and strengthened with adequate financial, operational and functional autonomy to act as the only nodal agency to develop, mine, produce and deliver coal both to industries and the common people. The  CITU demands that the government ensures return of all the coal blocks to Coal India Ltd for further development, mining and production operation, besides taking concrete steps to bring those responsible for the coal-gate scam and irregularities to book.

The Supreme Court will on September 1 consider the consequences of cancellation of the coal block allocations.

In a press statement, former MP and AICWF general secretary Jibon Roy hailed the  Supreme Court judgment and said it "vindicates the concern expressed by President Pranab Mukherjee in his speech on the eve of Independence Day this year when he cautioned about the increasing vulnerability of constitutional and parliamentary  governance".  The current judgment vindicates how the desperation to override the fundamental rights guaranteed by the Constitution has gone to the extent of legalising economic deals, which has been specifically forbidden  by 1972  and 1973  coal nationalisation enactments.

AICWF calls upon  the people of India, especially coal workers, to remain vigilant  against any move to regularise the illegality by changing the Constitution and existing legislation.  It warned the government that any  such move would tantamount to provocation for inviting  immediate and spontaneous strike in coal industry.