Coal Ministry focusses on bringing auctioned mines to production

Govt targeting two-fold jump in coal production to 1.5 bn tonnes by 2020

Coal Ministry is taking various steps, including holding regular discussions with the states to resolve issues related to mines amid Prime Minister Narendra Modi asking the ministry to focus strongly on bringing to production auctioned and alloted blocks.

The government is targeting two-fold jump in coal production to 1.5 billion tonnes by 2020.

"The Coal Ministry is taking various steps like conducting of regular followup and review meetings to resolve and discuss issues related to auction/allotment of coal blocks," an official said.

The representatives of Coal Ministry are making regular visits to the states and holding discussions to resolve problems faced by allottees in development of the mines, the official said.

The Prime Minister had earlier asked the Coal Ministry that there should be a strong focus to start production from auctioned and alloted mines by tracking transfer of land, mining leases, clearances among other in coordination with state governments.

Modi had also asked that the work of three critical rail lines, including Tori Shivpur railway line in Jharkhand, 15 siding projects, linkage rationalisation plan and new washeries should be monitored closely for commissioning as per the schedule, a source had earlier said.

Coal Secretary Anil Swarup, last month, said that as many as 15 more coal mines that were auctioned last year would begin production by March 31, taking the number of total producing mines to 23.

Swarup had said that eight of the mines have already come in production.

The government, last year, auctioned 31 coal mines in three tranches and made an allotment of 42 coal blocks to central or state government companies.

However, the government had to annul the process for the fourth round of coal block auction, scheduled in January, due to poor response from bidders in sectors like steel as well as depressed commodity prices and adverse market conditions.

Now, the government plans to initiate fourth round of auction as and when market condition improves.