Moef fiat hits 40 captive coal blocks

The ministry of environment and forests (MoEF) has declared 40 captive coal blocks, of the total 219 allocated earlier this year, as 'no-go' areas thereby blocking substantial amounts of coal for user industries, Union minister for coal Sriprakash Jaiswal said.

“We have asked them (MoEF) to have a re-look at the matter and revise their estimates. We will have a meeting with them on the issue next week,” Jaiswal said on the sidelines of the AGM of the Indian Chamber of Commerce here today.

These 40 captive blocks are part of the 48 per cent 'no-go' area, which the MoEF has identified after making assessments across nine coal fields and includes the Hasdeo Arand coal block that has been allocated to the delayed 4,000-MW Chhattisgarh UMPP.

The MoEF roadblock is likely to further aggravate the skewed demand-supply scenario for coal in India. “For 2010-11, coal requirement for power utilities is estimated to be 440 million tonnes wherein the availability from Coal India and other sources is expected to touch 388 million tonnes,” Jaiswal said.

“There is a projected shortfall of 104 million tonnes in 2011-12,” he added.

The Centre, however, is slated to increase its investment in the sector by over 50 per cent this fiscal. “The government intends to enhance its investment from Rs 260 crore in 2009-10 to Rs 400 crore in 2010-11 for developing transportation infrastructure in coal fields, regional exploration, detailed drilling and on environmental measures,” Jaiswal said.

Meanwhile, the much-delayed Bill for establishing a coal regulatory authority is to be tabled in the forthcoming Monsoon Session of Parliament and is likely to be in place in the next three months, the coal minister said.

“It is expected that this would lead to optimal utilisation of resources and ensure that the Indian coal companies raise their level of competence to be at par with international competitors,” he added.