Meghalaya Govt submitted 30 pages comprehensive plan for auctioning coal

Syllad | The Rising MeghalayaOctober 18, 2022

Adhering to the order of the High Court of Meghalaya, the Meghalaya Govt submitted a 30 pages revised comprehensive plan for handing over the extracted coal to Coal India Limited for auction.

The report was submitted during the hearing PIL No. 2 of 2022 in Re suo motu illegal mining of vs State of Meghalaya coal in the State of Meghalaya.

“This matter was directed to appear today, inter alia, to receive a comprehensive report for the final transportation and auction of the previously mined coal upon measuring the quantum of coal at every site where it now lies deposited,” said the Court order.

The Court informed the State has filed a report on Monday incorporating a notification dated October 13, 2022 issued by the Mining and Geology Department of the State and indicating the revised comprehensive plan for handing over the extracted coal to Coal India Limited for auction. The notification runs into nearly 30 pages and includes several chapters.

The first chapter deals with the identification and notification of designated depots; depot infrastructure; responsibility of transportation of coal to designated depots; mode and manner of issuance of transit pass for transportation of coal to designated depots; form and particulars of transit pass; mode and manner of transportation of coal from pitheads to designated depots after issuance of transit pass; verification process at designated depots; auction process; payment and maintenance of accounts; post auction transportation and other related aspects covering the interest of the purchasers.

The notification appears to be comprehensive in the aspects covered by it, particularly to ensure that fresh illegally mined coal is not mixed up with the previously mined coal and passed off as such.

The second chapter of the notification covers the procedure of transportation of the extracted coal.

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The third chapter details a scheme for the sale of the extracted coal through spot and e-auction. This chapter covers the bidding process and the procedure for delivery of coal.
It is hoped that the timelines indicated and the methodology suggested would be adhered to without any fail and the secretary in the Mining and Geology Department of the State along with the Chief Secretary to the State will remain responsible for strict adherence to the terms indicated in the notification of October 13, 2022.

It is recorded that the entirety of the previously mined coal, in terms of the proposal incorporated in the notification, is scheduled to be disposed of by the end of 2023.

The State and its officials should ensure that the activity is completed sooner rather than later. Coal India Limited and MSTC Ltd should also render adequate assistance and should immediately report to Justice Katakey in the event of any failure on the part of the State to adhere to the timelines or terms or upon any impediment being brought in the way of the early and quick disposal of the previously mined coal.

Justice Katakey will continue to monitor the process on a periodic basis and all information sought should be provided to Justice Katakey by the State, Coal India Limited and MSTC.
Dr Mozika, learned DSGI, seeks leave to intervene as Advocate of this Court and submits that the commercial terms for the auction may not have been appropriately fixed. He points out that the earnest deposit in the first round of auction has been kept so low that successful bidders have not come to collect the quantities allotted to them.

The suggestion is that if the quantum of earnest deposit is substantially raised, serious parties will be in the fray and the process may be expedited.
It is hoped that Justice Katakey looks into this aspect of the matter so that a process of re-auctioning and consequent delay can be avoided.