PRAKASH INDUSTRIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this petition under Article 226 of the Constitution by Prakash Industries Ltd. ('PIL') is to a letter dated 6th February, 2008 issued by the Government of India, Ministry of Coal allocating 73.85 MT of coal reserves to M/s S.K.S. Ispat & Power Ltd. ('SKS'), Respondent No. 4 herein. The further prayer is for a direction to the Ministry of Coal to allocate the non-coking coal block to both the Petitioner, PIL and Respondent No. 4 (on the basis of the capacity of the proposed power plant) as recommended by the Government of Chhattisgarh (Respondent No. 3) on 18th June, 2007.

(2.) The background facts are that on 6th November, 2006, Respondent No. 1 through Ministry of Coal advertised a list of 38 coal blocks for captive coal mining for allocation to companies engaged in the generation of power, production of iron and steel and production of cement. 15 out of the 38 coal blocks were earmarked for power generation. The remaining 23 blocks were to be made available for other specified end-uses like production of iron and steel and production of cement.

(3.) PIL states that it was incorporated in the year 1980, and is engaged in the business of manufacturing sponge iron, power co-generation, steel (blooms and billets) etc. PIL states that it has developed a fully integrated Steel Plant at Champa in Chhattisgarh which commenced production in 1993. The original installed capacity was 4 LTPA of sponge iron, 1.6 LTPA of liquid steel, 1.5 LTPA of structural steel along with 12 MW power co-generation.