Govt to decide on idle coal blocks next month

The government today said it would decide next month the fate of captive coal blocks lying idle with 82 companies, including ArcelorMittal, Tata Steel and NTPC, which have been issued notices for not developing them within the stipulated time.

“We have received their (companies’) replies and are compiling them. We will take the final decision in January on the issue,” coal minister Sriprakash Jaiswal said.

Since October, the government has issued notices to 82 companies to weed out non-serious ones that have failed to develop, within the stipulated time, the coal blocks allotted for captive use.

While threatening to withdraw their coal blocks, the government had asked the companies to explain their positions.

“Enhancing coal production is a priority for the government and we can take the coal blocks back, if they are not developed in a given timeframe,” Jaiswal said.

The other companies that were issued showcause notices include Naveen Jindal-led Jindal Steel and Power Ltd, Vedanta Group company Sterlite Industries, Sajjan Jindal-led JSW Steel and GMR Energy.

In a similar drive undertaken earlier, the government had de-allocated 11 coal blocks.

The coal ministry had also had a review meeting in July with the companies that had been allocated a total of 207 coal blocks for captive use under various power, cement and steel projects. In 2009-10, India produced about 532 million tonnes of coal. However, efforts to raise coal production suffered a setback this year due to an environment ministry directive to put a large number of coal blocks under no-go category.

According to Coal India Ltd, its production is set to fall short of target by 16 million tonnes this financial year and may miss the expected output by 39 million tonnes in 2011-12 due to extension of tough environmental norms.