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Why Change Perception... 

 

But for these captive mines, India's GDP would have been smaller or the country would have imported an extra $21 billion worth of coal, straining the balance of payments. Does the ordinance do anything to recognise this economic gain India derived from these captive mines? 

 

The SC cancelled coal allocations en masse because of not just arbitrary allocation but also of the technical illegality involved in state government enterprises eligible to get captive coal mines. 

 

Captive mines are inefficient. Suppose a cement plant gets a mine and has excess coal. A neighbouring power plant might be running short of coal, but the cement plant cannot supply the power plant. The ordinance could easily have scrapped state monopoly and allowed full-fledged commercial mining. This would bring in professional miners, absent underground mining techniques and vastly improved production and productivity of coal mining in the country. But that has been postponed to some indefinite future. 

 

No company with a producing captive mine has been convicted of any illegality. So, all of them can take part in the auctions. But there is no preference being given to those who invested in the mines, developed them and now produce coal. So, a Hindalco could take part in the auction but see its mine being auctioned off to Jindal SteelBSE 2.27 % and Power or to an altogether new seeker of captive coal. 

 

 

Source: ET