States Advised to Facilitate Clearances for Coal Blocks

The coal bearing State Governments have been advised to facilitate and expedite in obtaining the various clearances, grant of mining leases and land acquisition by the coal blocks allocattees so that coal production can be increased. This information was given by the Minister of State for Coal, Shri Pratik PrakashBapu Patil in a written reply in Rajya Sabha  today.

He said that a total of 218 coal blocks with geological reserves of about 50 billion tonnes have been allocated to eligible public and private companies, out of which 178 coal blocks stand allocated as on date after de-allocation/reallocation and withdrawal of de-allocations made.  Out of the above, 35 coal blocks have come into production.

Development of coal blocks involves a gestation period of 3 to 7 years for reaching the production stage and another two to three years for reaching the optimal production capacity.  As per the guidelines, coal production from a captive coal block should commence within 36 months (42 months in case the area falls in forest land) in case of open cast mines and in 48 months (54 months in case the area falls in forest land) in case of underground mine, from the date of allocation.  If a coal block is not explored, additional two years are allowed for detailed exploration and three months for preparation of geological report.

The responsibility of developing the coal block as per the prescribed guidelines and milestone chart attached with the allocation letter rests entirely with the allocattee company. The allocattees of coal blocks, who have not started production so far, are in various stages of obtaining statutory clearances and mining lease, preparing mining plan, acquisition of land, procuring machinery and equipment etc. for both mining as well as end-use project.  Government periodically monitors and reviews the development of allocated blocks as well as end use plants by the allocattee companies in the review meetings. Further, an Inter-Ministerial Group (IMG) has been constituted on 21.06.2012 under the chairmanship of Additional Secretary (Coal) to review the progress of development of allocated coal/lignite blocks and associated end use projects of the allocattees. Wherever delays are noticed, Government issues show cause notices and advisories to such allocatteescautioning them to bring the coal blocks into production as per the guidelines/milestones chart.

Based on the recommendations of the then Review Committee and the IMG, the Government has so far de-allocated 47 coal blocks.  State-wise details of de-allocated coal blocks are at Annexure. Out of the 47 de-allocated blocks, 2 blocks were allocated again and in respect of 5 blocks allotted to National Thermal Power Corporation Ltd./Damodar Valley Corporation Ltd./Jharkhand State Electricity Board, de-allocation letters were withdrawn.

Details of de-allocated coal blocks as on date

Out of the above mentioned de-allocated blocks, two coal blocks namely Utkal B-1 and Utkal-A have been again allocated.

Three coal blocks, namely, Brahmini, Chicro-Pastimal and East of Damagoria (Kalyaneshwari) have been assigned to Coal India Limited.

*The de-allocation of these coal blocks has been withdrawn.