Re-auctioned coalmines to restart production in 2 months: Coal minister

The mines reallocated in Chhattisgarh have been closed since April 1

The coalmines that were auctioned under the new process by the Narendra Modi government and had been closed since the ownership right changed on March 31 would re-start production within two months.

In Chhattisgarh, nine coalmines were operational that were re-auctioned after the apex court cancelled the allocation of coal blocks in September. The operating company was asked to wind up the work and handover the mine to the new owner on March 31.

Of the nine mines, two were re-allotted to state-owned Rajasthan Vidyut Nigam Limited in Parsa East and Kete Basen and hence the production continued even after March 31. However, with the change of guard in remaining seven coalmines, coal production came to a halt as required clearances could not be timely transferred besides other issues.

In other states also, the new owners had been reportedly facing the same problem and the coalmines bagged by the private companies could not continue the production.

"The ministry of coal held a series of meeting with the new owners to note down the problems and had been sorting it out," Minister of State with Independent Charge for Power, Coal and New & Renewable Energy Piyush Goyal said. In next two months, all the closed mines would re-start production, he added.

The minister said a few coalmines that had been bagged by the state-owned companies including Coal India Limited (CIL) would start production soon. The required clearances and consent to operate had been awarded, he said, adding that the ministry officials had been visiting the states to ensure that the issues related to coalmines had been resolved.

Goyal said the coal production in the country had been constantly increasing. "As on June 22 (2015), the CIL production had reached 110.9 million tonnes that was up by 12.3 per cent as compared to production recorded in the corresponding period of last year," he said.