Allocate coal blocks urgently through bidding: House panel


New Delhi : The parliamentary Standing Committee on Coal has asked the coal ministry to immediately initiate allocation of coal blocks through the bidding system in view of the urgent need to boost India’s coal production.

Support TwoCircles

The Committee strongly felt that early development of identified coal blocks is imperative to boost coal production in the country.

“The Commiitee would like the ministry to go in for allocation of coal blocks through bidding system without any loss of time and they (Committee) may be apprised accordingly,” it said in its report on the demand for grants 2012-13 tabled in the Lok Sabha Monday.

The committee, headed by Kalyan Banerjee of Trinamool Congress observed that no progress had been made for the development of identified coal blocks for allocation through the bidding system.

The government has identified 54 coal blocks with total geological reserves of about 18 billion tonnes for allocation, of which 16 blocks are for government companies, 16 for the power sector, and 22 for companies selected through auction.

Meanwhile, Minister of State for Coal Pratik Prakashbapu Patil said in Parliament that the ministry has decided to allocate the blocks after detailed exploration for auction and for power projects to be selected on the basis of tariff based bidding.

The Standing Committee said in this regard that detailed drilling has been completed for 12 coal blocks.

“However, for the remaining 42 blocks CMPDIL (Central Mine Planning and Design Institute Ltd) has been asked to prepare a plan for exploration.”