The Hindu : National : Allocation of coal blocks on for captive use by firms

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Monday, Dec 31, 2007
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Allocation of coal blocks on for captive use by firms

Special Correspondent

Ministry following directions of energy panel led by PM

NEW DELHI: As per the directions of the Energy Coordination Committee (ECC), headed by Prime Minister Manmohan Singh, the Coal Ministry has initiated the process of allocating 23 blocks for captive use by the private and public sector companies.

The ECC had recommended allocation of 81 blocks, with a total coal reserve of about 21 billion tonnes. Of this, the government had allotted 51 blocks in 2007. To implement the ECC decision, 44 blocks of Coal India Limited that are not scheduled for production during the 11th Plan have been de-allocated for allotment to others.

Official sources said that during 2007, the Ministry allocated 17 coal blocks to the Central and State PSUs for commercial selling without the restriction of captive mining. This was soon followed by allocation of 10 blocks to the PSUs exclusively for captive mining for power generation. Another 15 blocks were allotted to private companies for captive use for power generation.

Ultra power projects

Of the 16 blocks earmarked for the Ultra Mega Power Projects (UMPP), three each were allotted to Orissa and Madhya Pradesh and one block for the proposed project in Jharkhand. Rajasthan Rajya Vidyut Utpadan Nigam Limited was allotted two blocks for power generation.

The sources said the Screening Committee for the Ministry had held one round of meeting for allocation of 23 blocks for captive mining to steel and cement sectors.

A total of 172 coal blocks, with reserves of 38 billion tonnes, had so far been allotted to various private and public sector companies. The Ministry said the government was optimistic of realising a production of 104 tonnes of coal outside the domain of the coal PSUs during 2011-12, against 25 tonnes expected in 2007-08.

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