Coalgate case had sparked strong condemnation from all walks of life. The incidence erupted people's anger against the UPA government which got translated in the debacle of UPA'S government in 2014 Loksabha poll.
In a landmark decision, the Supreme Court cancelled 214 coal block allocations since 1993. The court said all coal block allocations were done in an illegal manner, breaching all the set guidelines . The Supreme Court declared that all coal mining rights assigned in the sixteen year period between 1993 and 2009 were illegal and there was absence of transparency in the process.
The verdict of Supreme Court seems more pernicious than productive as it is not only leading the coal companies and power sector into the dark but the results of Supreme Court's decision will be profusely more negative affect the whole economy to a greater extent. After power sector, banks are going to be badly affected by this decision. Alike Banks’ exposure to 2G loans of Rs 10,000 crore, the similar kind of panic banks will bear in the quash of 214 coal block allocation. In addition, banks which lent money to power companies will have to rework their bad loan balances. Similarly new players in solar and other alternative energies will also look at the policy failures in India as imminent threats. Heavy industries which are already bearing the brunt of expensive imports will be further lashed by the high prices of coal and electricity.Noteworthy to notice, Supreme Court's judges apprises, that in handing out coal licenses 36 different committees from state and central governments acted arbitrarily and in spite of it country suffered big monetary losses.
It is really ironical that at one end government is causing losses of billions of dollars due to its inefficiency to allocate the resources in a transparent and profitable manner. On the other end the stringent laws dash the performance and profitability of the corporate sector not the politicians who are bigger culprits.
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