Coal Min okays allocation of 23 captive blocks

“The ministry’s Screening Committee deliberated on the allocation of 23 captive coal blocks to steel, cement and sponge iron companies for meeting their production needs. The Committee has recommended allocation of all blocks to the competent authority for further course of action,” a top Ministry official told The Indian Express.

The Committee is understood to have approved allocation of Behrabandh coking coal block having estimated reserves of more than 150 million tonnes in Madhya Pradesh jointly to Vinod Mittal-led Ispat Industries Essar, Mukund Steel, Ind Synergy and Mideast. In addition the Urtan coal block also in the same state has been recommended in favour of Jindal Steel and Power and Monnet Ispat. The block has an estimated reserves of about 42 MT.

A total of 172 blocks with reserves of 38 billion tonnes have been allotted to private and public-sector firms, the official said. Thirty-one private firms were allocated 15 coal blocks, with reserves of 3.6 billion tonnes to support additional generation of 16,000 MW. So far the ministry has identified 81 blocks with about 20 billion tonnes reserves. Of these, 41 blocks with reserves of about 15.7 billion tonnes were earmarked for the power sector.

Any laxity by the allocattees would not be brooked and the Government could resort to forfeiting their bank guarantees and de-allocating blocks for delaying production.

•31 private firms were allocated 15 coal blocks, with reserves of 3.6 BT to support generation of 16,000 MW

•Some blocks were de-allocated from CIL to ensure raw material security to firms

•The government could forfeit bank guarantees and de-allocate blocks for delaying production