BackGovt may allocate coal blocks to public sector firms for commercial mining
The move is meant to address fuel needs of small industries, and state-run firms can decide whether to provide coal through linkages or auction it
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Kolkata: The government is planning to allocate around 8-10 coal blocks that does not have agreement with Coal India Ltd to state government-run public sector companies for commercial mining, coal secretary Anil Swarup said on Wednesday.
The move is meant to address the fuel needs of small industries and the companies can decide whether to provide coal through linkages or auction it, the official said.
In an interactive session of Coal Consumers’ Association of India, Swarup said the coal blocks would be dispensed after examination of applications by a committee. “We will then decide which block will go to which state," Swarup said. The ministry will finalize the coal block allocation mining after the assembly elections.
The coal blocks would be allotted to state public sector undertakings that do not have compulsion to use the coal in their power plants and will be able to sell it to small users, added Swarup.
At present, the small-scale industries, including sponge iron plants and brick kilns, do not get coal from Coal India. They procure it at a price higher from the open market.
On allowance for private commercial mining, Swarup said that though the groundwork has been done, it is “not the most appropriate time to go ahead with private commercial mining".
He said the apprehension stems from the tepid response for the last round of auction. The improved supply of coal in the country could have led to such a situation, he said.
Swarup also said that a policy for coal linkage auction for regulated power sector is under way after a similar exercise has been made for unregulated sector.
The government is also considering rolling out an UDAY-like scheme to help the stressed steel sector in the country, he said.
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