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The Union cabinet today decided to move an ordinance to take over coal blocks cancelled by the Supreme Court, and conduct auctions of the mines.
"The original Coal Mines Nationalization Act remains. Coal India's interest will be fully protected and the allocations process will be completed in 3-4 months," Finance Minister Arun jaitley said.
He added coal mines will be allocated to Public Sector Undertakings (PSUs) on a priority basis. "Entire mess created by the United Progressive Alliance (UPA) government since 2005 would be cleaned up," Jaitley said, adding the move would help generate employment in states where the mines are located.
The government will begin the clean-up by first placing all the mines in a central pool and then start their allocation. Post today's decision, going forward the centre will decide on commercial users of mines.
The move would allow changes in the law similar to what was enacted at the time of nationalisation of coal mining in 1973. The major issue the government was facing is the acquisition of land titles and takeover of leases from the existing holders of captive coal mining rights.
