Government identifies six blocks for commercial mining by PSUs

NEW DELHI: The coal ministry has identified about six coal blocks for allotment to public sector units (PSUs) for commercial mining, Coal Secretary Anil Swarup has told ET.

Each of these blocks holds about 200 million tonne of reserves, Swarup said.

He said commercial coal mining by PSUs will help eliminate grey markets and address the menace of coal pilferage.

The Cabinet Committee on Economic Affairs ( CCEA), chaired by Prime Minister Narendra Modi, had on Wednesday approved the allotment of coal mines to central and state PSUs for sale of coal.

Swarup said the move to allow PSUs will not affect state-run coal monopoly Coal India. “The move is aimed at meeting demand from small and medium industries that can not get coal from Coal India,” he added.