Experts and industry observers call for a transparent process to allocate mining assets to private players in the wake of a series of irregularities in the mining sector in Odisha, Goa and Karnataka.
Whether the mining blocks are allocated by the state government or the central government, the zone of discretion should be minimised, said RV Shahi, a former Union power secretary.
If the allocation power is given to states for coal blocks, each coal-bearing state will have to set up its own screening committee for selection of allocatees.
According to the current practice, the responsibility of setting up a screening committee lies with the central government and is performed through a national-level committee.
This is at a time the centre is trying to introduce a number of players in the field of coal mining through a somewhat liberal captive coal policy (even as privatisation of commercial coal mining remains a pipe dream). So if the states start allocating coal blocks, the centreÂ’s ability to manoeuvre the policy space would be constrained.
It may be recalled that the central government is in the process of introducing changes in the MMDR Act, through a bill which is now before the parliamentary panel concerned.
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