Coal ministry to allocate 23 blocks for captive use

NEW DELHI: The Coal Ministry is in the process of allocating 23 blocks for captive use by public and private sector companies as per directions of Energy Coordination Committee.

ECC had recommended allocation of 81 blocks, with a total coal reserve of about 21 billion tons, of which the government has already allotted 51 blocks during 2007.

To implement the ECC decision, 44 blocks of CIL that are not scheduled for production during the 11th Plan have been de-allocated for allotment to others.

During 2007, the Coal Ministry allocated 17 coal blocks to central and state PSUs for commercial selling without the restriction of captive mining.

This was soon followed by allocation of 10 blocks to PSUs exclusively for captive mining for power generation. Another 15 blocks were alloted to private companies for captive use for power generation.

Out of 16 blocks earmarked for the ultra mega power projects, three each were alloted to Orissa and Madhya Pradesh UMPP and one block for that in Jharkhand. Rajasthan Rajya Vidyut Utpadan Nigam Limited was alloted two blocks for power generation.

The Screening Committee for the Coal Ministry has already 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 tons have so far been alloted to various private and public sector companies.

Sources in the Coal Ministry said the government is optimistic of realising a production of 104 MT of coal outside the domain of coal PSUs during 2011-12 as against 25 MT expected during 2007-08.