A Cautious Haul Over the Coals

A prudent decision by the Supreme Court can offer relief to the coal sector

The Supreme Court’s intervention in the coal scam cases has driven home the point that morally upright practices should be employed in economic decision-making. The bench is now expected to take a call on the consequences of its order on coal blocks allocated by successive governments.

But there is merit in the argument that the court should keep in mind the implications of an en masse cancellation of coal blocks. A similar intervention, it may be recalled, had hit hard one of India’s critical sectors— telecom. On its part, the Government has said that 46 blocks should be left untouched.

These blocks have mining leases and functioning end-use plants. With the country sitting on a power crisis time bomb, the SC decision on coal blocks could have serious ramifications. An acute shortage of coal has led to a 5,000 MW power shortage in India’s northern region alone. A prudent decision by the court can offer relief to the sector.

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