Government expects all operational coal blocks to resume work by July

NEW DELHI: The government expects all operational coal blocks that were auctioned to resume operations by July as court cases and issues with state governments get resolved. At present, 10 of the 16 producing coal blocks auctioned early last year have begun operations. The 10 blocks produced 12 million tonne coal in the last financial year. The remaining blocks are behind schedule due to various issues like court cases, delayed regulatory approvals and lack of clearances by states, a senior coal ministry official said.

In a key development, the Calcutta High Court on Friday ruled that mine development agencies can be appointed only through a transparent bidding process. Private mining development operator EMTA Group had approached the court seeking directions to the winner of Trans Damodar coal mine in West Bengal to retain EMTA as the mine contractor.


EMTA had exclusive mining rights over the coal blocks before it was cancelled on the Supreme Court’s directions and was later won by state-run Durgapur Projects. The coal ministry official said the ruling in favour of Durgapur Projects will help expedite the development of the block. The firm has already selected a mine developer and will now be able to award the contract.

Two coal mines — Marki Mangli-I and Marki Mangli-III — in Maharashtra are expected to begin operations next month. Auction of Marki Mangli-I, won by Topworth Urja & Metals, was delayed due to a court case. Environment clearance for Marki Mangli-III, won by BS Ispat, has been delayed. The block was earlier merged with Marki Mangli-I and Marki Mangli-II. The environment ministry is now in the process of granting fresh clearance for Marki Mangli-III.

Development of Kathautia coal mine, won by Hindalco, and Tokisud North mine, won by Essar Power, in Jharkhand is expected to gain pace as the state government has indicated that the coal mines are free of forest land. The state’s forest department had earlier objected to green clearances to the mines, saying they could have vast forest spread.

“The additional chief secretary of Jharkhand has indicated that the two mines could be free of forest area,” the coal ministry official said. Monnet Ispat that won Gare Palma IV/7 in Chhattisgarh has been slow in development of the block due to a financial crunch. The government had auctioned 17 producing coal blocks, however, the Ardhagram coal block in West Bengal was handed over to Coal India after it was awarded to OCL Iron & Steel in view of a court case.