CoalMin calls for expediting development of captive blocks

Amid the slow pace of development achieved by captive coal block allottees, the coal ministry has indicated it would initiate action against them in the form of deduction from bank guarantee and deallocation. It admitted the slow progress was due to lack of dissemination of information to the allottees regarding an empowered group of minister (EGoM)’s decision to abandon the ‘No Go’ policy taken in July last year.

According to a recent analysis by the ministry, 23 of the 218 blocks allocated so far had been deallocated till December. Of the rest 195 blocks, 39 are allocated to government undertakings for commercial use. Of these, some have been transferred to linked power projects for commercial use within the state. Mining plans for 126 blocks have already been approved, while 29 have started production and nine have reached peak rated capacity.

The ministry hinted it would caution 32 blocks to expedite work to start production. It also found progress in 58 blocks unsatisfactory and said would send show-cause notice to them.

A ministry official told Business Standard the owners of blocks, earlier rejected forest clearance by the environment ministry because of ‘No Go’ categorisation, had been asked to pursue their forest clearance proposals with respective state forest departments for further consideration. “The Coal Controller is directed to give information on opening of ‘escrow accounts’ and approval of mine closure plans of captive coal blocks,” he said.

According to him, an allottee should redefine boundaries in consultation with the state forest department if the block comes under a buffer zone or a National Tiger Reserve Forest area and subsequently move the proposal to the environment ministry for clearance.

R V Shahi, former power secretary, said, “As many as 20 blocks have started producing at rated capacity and 20 blocks are starting production soon. Non-responsive agencies, whose number seems to be almost 40, need to be given notices for cancellation and if they do not improve the situation, the coal ministry should definitely cancel and allot those to more deserving agencies.”