Union Cabinet has decided to promulgate an ordinance to take back cancelled coal blocks and reallocate them.

A decision in this regard was taken at the cabinet meeting in New Delhi this evening. Talking to reporters after the meeting, Finance Minister Arun Jaitely said that auction of coal mines will be completed in 3 to 4 months.

He said sufficient number of mines will be put up for e-auction and the mines will be allocated to state-owned organizations like NTPC and state electricity boards on priority basis.

The decision followed Supreme Court's judgement quashing allocation of coal blocks allotted by screening Committee during previous regimes.

Mr. Jaitely said power, steel and cement sectors were going to suffer because of non-functioning of coal mines whose allocation was cancelled by the apex court.

He said Coal India will continue to function and its all requirements for present and future will be adequately protected.