Govt likely to put 75 coal blocks for bidding with green clearances

But the coal ministry is cautious this time before announcing the blocks for bidding as it is fighting a bitter turf war with the Union ministry of environment and forests (MoEF) for bailing them out nearly 203 captive coal blocks from the list of ‘No Go’ areas,which have been declared as ‘No Go’ areas by the MoEF. Declaration of these blocks as ‘No Go’ areas has unleashed uncertainty among power,steel and cement project developers,who have invested huge money in developing them,only to be told that these blocks were henceforth not mineable. Investment worth crores of rupees are at stake on this vexed issue including the Ultra Mega Power Projects. This has made the power ministry restless and seek for an express resolution of the matter.

“We want to be sure on securing environmental clearances (EC) form the MoEF and would discuss the EC issues with them before putting them for bidding as there should not be a repetition of the past,” a senior coal ministry official told The Indian Express. Apart from the EC issues,the ministry is also aware of the huge number of claimants for these blocks including CIL itself,which has already sought 148 blocks to meet its coal production target. Besides,those companies,whose blocks have been categorised as being part of ‘No Go’ areas are eagerly waiting to be compensated. The high-level committee headed by Planning Commission member B K Chaturvedi,constituted to look into the issue of ‘Go’ and ‘No Go’ areas has suggested that existing allottees should not be equated with fresh applicants seeking coal blocks.

It further recommended that of the available coal blocks to be cleared by the environment ministry,50 per cent be put up for auction and the remaining be reserved for alternate coal block allottees. Another suggestion by the panel was to consider on,a priority basis,only those who have made substantial investments,while the rest be asked to participate in the auction route with preference given to them. “In all probability we would not prefer to go for auctioning unless we have some clarity on the vexed ‘Go’ and ‘No Go’ areas,or else the fresh allottees too would be subjected to the same rigour as others have undergone.

Nonetheless,we expect a resolution soon as we have asked the Cabinet Committee on Infrastructure to intervene to resolve the impasse,” the coal ministry official added. The Prime Minister’s Office (PMO) too is concerned on the impact of blocking the reserves of 203 blocks amounting to 660 million tonne of coal capable of generating 1,30,000 mega watts of electricity.