New Delhi:
The report by the national auditor on the massive losses caused by the allocation of coal fields is being refuted by the government, but has led to the Prime Minister suggesting that no mines in the mines and minerals sector be assigned for now. The auditor's report said that because an auction was not held for coal blocks between 2004 and 2009, the government lost up to 1.86 lakh crores.
New legislation that would introduce an auction for minerals is pending with parliament. The prime minister's office has told Mines Minister Dinsha J Patel's office that it would be prudent to wait till the bill is passed before allocating other mine fields. The Attorney General, GE Vahanvati, disagrees. He has said that for now, the government should continue with a first-come-first-serve policy but in a fair and transparent manner.
The government had earlier decided to carry on with the first-come-first-served policy in the mines and minerals sector, sources had told NDTV. The decision was made despite the Supreme Court saying that all national resources must be distributed only through auction.
On Aril 12, the government filed a presidential reference in the Supreme Court asking if its judgement in the 2G case makes auctioning of natural resources compulsory. The government has sought clarity as the 2G case judgement has ramifications on several other sectors. So it has put together a list of questions that will be delivered to a five-judge bench of the Supreme Court where the matter is being debated. The queries include whether a process of auction has to be followed in the allocation of all natural resources, and if so, whether that amounts to the court interfering with the government's work by setting policy.