Govt not to put Mahan coal block in upcoming auction

The Coal Ministry will not put on offer Mahan coal block in Madhya Pradesh in the upcoming coal mine auction as the project is yet to get green nod.

With the Ministry dropping Mahan coal mine from the schedule III (ready to produce mines) list, the government will now auction 23 mines, instead of 24.

"Mahan coal mine will not be put for auction in the upcoming auction as the block is yet to seek clearance from the Ministry of Environment and Forests (MoEF)," an official said.

Mahan coal block in Singrauli coalfields in Madhya Pradesh was earlier allocated in 2006 to Essar Power and Hindalco Industries for their end-use plants. However, the mine was deallocated after Supreme Court cancelled the allocation of 204 mines in September last year.

The Mahan coal block lies on the periphery of the Mohan Ban Reserve Forest.

Earlier, the Ministry dropped a coal block in Arunachal Pradesh from the list of 24 schedule II (producing) mines to be auctioned next month.

The government on December 25 kick-started the auction process for coal mines that were deallocated by the Supreme Court.

The Union Cabinet had earlier approved re-promulgation of the coal ordinance and necessary guidelines for mine allocations.

The entire mine allocation process for Schedule II (in production) coal mines will be completed by March 23 with the signing of Coal Mine Development and Production Agreement, the government had said earlier.