Govt open to review decision on coal blocks de-allocation

The government is open to review its decision of cancelling allotment of coal blocks to public sector firms including power major NTPC, Coal Minister Sriprakash Jaiswal said today.

The development comes within a week of Coal Ministry announcing cancellation of 14 coal blocks and one lignite block alloted to steel, power, cement etc firms for captive use following their failure to meet the stipulated deadline for mining.

"If PSUs come forward with a request to review the decision of de-allocation of coal blocks, we will surely do this," Jaiswal told reporters after a meeting to assess coal companies performance.

Any affected party including State PSUs and state governments can approach the Centre, Jaiswal said when asked whether the decision of de-allocation including that of NTPC was open to review.

On May 5, Coal Ministry had announced its decision to cancel allotment of 14 coal blocks and one lignite block to six PSUs, including NTPC, and three private firms for their failure to develop mines.

Apart from NTPC, the Ministry had cancelled blocks to DVC, Andhra Pradesh Power Generation Corporation, TVNL, Bihar State Mineral Development Corporation and Jharkhand State Electricity Board besides three private firms -- Shree Baidyanath Ayurved, Bhatia International and VS Lignite.

Country's largest thermal power producer NTPC has already approached Power Ministry to take up the matter with Coal Ministry for review of its decision to de-allocate five blocks alloted to it.

"The power ministry has assured us that it is with us on this issue," an NTPC official said.

Earlier, reacting to the development an NTPC official had said the company was making sincere efforts to develop the mines and under the circumstances the Coal Ministry should ensure dry-fuel allotment to it for power generation.

The ministry had deallocated five blocks -- Chatti Bariatu, Chatti Bariatu (S), Kerandari, Brahmani and Chichiro Patsimal -- awarded to state-run firm.

The decision to deallocate blocks had followed recommendations by a Coal Ministry panel which reviewed progress made by firms in developing 88 coal and lignite blocks, allotted for captive use.

The committee had also recommended issuing warning to 29 coal and three lignite block allocattees against any delay in bringing their blocks into production.

To weed out non-serious players, the government had last year issued notices to 84 coal and four lignite block allocattees for not developing the same within stipulated time and sought explanation as to why blocks should not be cancelled.

Earlier, reviewing the performance of coal companies including Maharatna CIL, Jaiswal said delays in land acquisition for mining projects had become a major impediment for enhancing country's coal production.

"To overcome this, rehabilitation and resettlement policy should be more attractive and stakeholders friendly," he said.

Jaiswal said Coal India should take all steps to meet the production target of 452 million tonne for the current fiscal.

Replying to a media query after the review meeting, Jaiswal said there was no possibility of a price hike of coal post wage revision of CIL.