Coal news and updates

Centre allocates 36 coal blocks to PSUs

The government on Wednesday announced that it has earmarked 36 coal blocks for allocation to state-owned firms that includes one block for the steel sector and the rest for power producers.

Coal secretary Anil Swarup said that the entire process of allocation will be completed by end of February and added that more coal blocks could be added to the allocation list if the requirement arose.

“It (addition of more coal blocks to allocation list) will depend on the request we receive from the state entities, public sector entities. The ministry is also issuing guidelines for these coal blocks,” Swarup said.

Of the 36 coal blocks, 17 blocks belong to schedule II (producing mines) while 8 are from Schedule III mines (ready-to-produce mines). The remaining 11 blocks have been added to the list from Schedule I.

The allocation process also provides for companies to relinquish their existing coal linkages upon securing a mine. “We have enabled such public entities that have coal linkages. They can surrender coal linkages and then apply for coal blocks…and once the linkage gets surrendered that much coal will be made available to Coal India to be given to other entities who are in need of coal,” he said

Currently, the e-auction process for 23 schedule II blocks and 23 Schedule III mines is underway. The vesting order for schedule II and schedule III mines will be issued by March 23 and April 2, respectively.

“We started with 42 mines in schedule II and 32 mines in schedule III. Subsequently 27 mines were transferred from schedule I to schedule III thereby taking the number to 101,” he said and added that the ministry was currently looking at only 98 of those blocks as three blocks were found to be in “no go” area.

With regard to mines to be auctioned in schedule II category so far 87 distinct bidders have purchased 224 forms,while in the case of mines in the Schedule III category, the companies have so far purchased 82 forms. He further said that around 167 requests have been received from the companies for visiting the block sites.

* Earmarks one block for the steel sector and the rest for power producers
* Process of allocation will be completed by end of February
* More coal blocks could be added to the allocation list if the requirement arose
* 17 blocks belong to schedule II (producing) while 8 are from Schedule III mines (ready-to-produce)

Source: The Financial Express