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Home News Power Sector News 25 coal blocks may be put on auction today for state-run companies

25 coal blocks may be put on auction today for state-run companies

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Coal MineThe coal ministry on 15-01-2015 is likely to put on offer about 25 coal blocks with over eight billion tonnes of reserves for state and central government companies that have steel and power plants. While 24 of these blocks are likely to be reserved for the power sector, one will be earmarked for a state-run steel plant, an official told ET, adding that the blocks can fire plants generating at least 30,000 Mw of electricity.

The ministry will also specify the criteria for awarding blocks to PSUs on nomination basis, including preparedness of the end-use plants and their proximity to the mine, progress of development of coal blocks by the company in the past, financial and technical capabilities of the applicant, the technology proposed to be used for mining, and the demand and supply gap of coal of states that host the blocks, the official said.

The coal blocks are in the states of Chhattisgarh, Jharkhand, West Bengal, Maharashtra, Odisha and Telengana.

These blocks earlier belonged to companies like NTPC, Steel Authority of India, Damodar Valley Corp, NALCO and state power and mining corporations of states like West Bengal, Uttar Pradesh, Karnataka, Andhra Pradesh, Rajasthan, Gujarat, Odisha and Punjab.

The mining licences of 204 coal blocks, including these 25, were cancelled by the Supreme Court on September 24 last year and the government later decided to e-auction or allocate them afresh.

The blocks that are likely to be offered to the government companies include NTPC's Chatti Bariatu and Chatti Bariatu South with 597 million tonnes of reserves, Talaipalli with 965 million tonnes, Kerandari with 229 million tonnes and Dulanga with 260 million tonnnes of coal.

Applications from government companies are also likely to be invited for the Chendipada block, which has 795 million tonnes of coal reserves and earlier belonged to the power utility of Uttar Pradesh, and Punjab State Electricity Board's Pachwara Central block with 562 million tonnes of coal.

Source- ET


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