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The ordinance to e-auction coal blocks got President Pranab Mukherjee's approval on Tuesday, paving the way for a "transparent" allocation process for mines to the private sector, even as trade unions and Left parties opposed the move.
The ordinance was warranted in the backdrop of the Supreme Court's order quashing 214 coal blocks allocated to various companies since 1993 on the ground they were done in an illegal manner by an "ad-hoc and casual" approach "without application of mind".
Industry bodies hailed government's move and termed it as a step in the right direction.
"This is an important decision and highlights the government's seriousness to reform the coal sector. Through this move, the government has arrested concerns pertaining to diminishing coal supplies," Federation of Indian Chambers of Commerce and Industry President Sidharth Birla said.
"The air of uncertainty has been resolved and a clear road map has been put forward. CII (Confederation of Indian Industry) believes quick decision-making by the government sends the right signals," CII Director-General Chandrajit Banerjee said.
Naveen Jindal-led Jindal Steel & Power Ltd, among the worst hit in the cancellation of the coal blocks, said it would participate in the auction process. JSW Steel would "definitely" take part, its joint managing director, Seshagiri Rao, said.
Left parties and several trade unions opposed the e-auctioning and the enabling provision in the ordinance that allows commercial mining by private firms and sought its reversal, warning of a nationwide strike if the Centre went ahead with the changes.
All India Trade Union Congress General Secretary Gurudas Dasgupta said the decision of the government on coal blocks "has a covert implication. It is a back-door entry for taking over the entire coal sector by private corporates".
The Communist Party of India (Marxist) and the Communist Party of India said they fully supported the protest actions by central trade unions.
All India Coal Workers Federation General Secretary Jibon Roy, too, warned of a nationwide strike if the government implemented any enabling provision to allow commercial mining by private companies.
Allocation of coal blocks became a political issue after the Comptroller and Auditor General alleged arbitrariness and absence of any criteria in the screening process and pegged notional loss to the exchequer at Rs 1.86 lakh crore.
