Question : ALLOCATION OF COAL BLOCKS



(a) the quantum and value of coal reserves in various coal blocks in the country, coal block-wise and State-wise;

(b) whether the Government proposes to allocate all the coal blocks to public sector coal/power companies;

(c) if so, the details thereof; and

(d) if not, whether the Government proposes to allocate some of the coal blocks to private mining companies and if so, the details thereof, State-wise?

Answer given by the minister



MINISTER OF STATE (INDEPENDENT CHARGE)FOR POWER, COAL AND NEW & RENEWABLE ENERGY (SHRI PIYUSH GOYAL)

(a) Exploration for coal is a continuous process. As a result of exploration carried out up to the maximum depth of 1200 meters by the Geological Survey of India, Central Mine Planning and Design Institute, Singareni Collieries Company Limited, and Mineral Exploration Corporation Limited, a cumulative total of 301.56 Billion tonnes of Geological Resources of Coal have so far been estimated in the country as on 01.04.2014. The details of state-wise geological resources of coal are given below:-

 
(Figures in Million Tonnes after rounding off) State Proved Indicated Inferred Total West Bengal 13403 13022 4893 31318 Jharkhand 41377 32780 6559 80716 Bihar 0 0 160 160 Madhya Pradesh 10411 12382 2879 25673 Chhattisgarh 16052 33253 3228 52533 Uttar Pradesh 884 178 0 1062 Maharashtra 5667 3186 2110 10964 Orissa 27791 37873 9408 75073 Andhra Pradesh 9729 9670 3068 22468 Assam 465 47 3 515 Sikkim 0 58 43 101 Arunachal 31 40 19 90 Pradesh Meghalaya 89 17 471 576 Nagaland 9 0 307 315 Total 125909 142506 33149 301564
Coal block is an administratively determined area for the purpose of allocation. The entire coal reserves of the country are not divided in the coal blocks and therefore, distribution of coal reserves in the country coal block-wise and value of coal reserves are not available. Further, value of coal reserves is dependent on mineable quantity of coal, its quality, geo-mining conditions, etc. and thus value of coal reserves can only be assessed after preparation of detailed mining plans/project reports.

(b) to (d): Hon’ble Supreme Court of India in its judgment dated 25.08.2014 and order dated 24.09.2014 passed in W.P.(Criminal) No.120 of 2012 and other connected matters has declared all allocations of the coal blocks made through Screening Committee and through Government Dispensation route since 1993 as illegal and has cancelled the allocation of 204 coal blocks out of 218 coal blocks (i.e. exceptTasra coal block allocated to Steel Authority of India Ltd. and Pakri Barwadih coal block allocated to National Thermal Power Corporation and 12 coal blocks allocated for Ultra Mega Power Projects). In case of 42 coal blocks (37 producing and 05 likely to come under production), cancellation shall take effect from 31.03.2015. For management and reallocation of cancelled coal blocks, Government has promulgated ‘the Coal Mines (Special Provisions) Ordinance, 2014’ on 21.10.2014to ensure smooth transfer of rights, title and interest in the mines along with its land and other associated mining infrastructure to the new allottees to be selected through an auction or allotment to government company, as the case may be.Allocation of other than the cancelled coal blocks are now required to be made in accordance with the Coal Mines (Nationalisation) Act, 1973 and Mines and Minerals (Development & Regulation) Act, 1957. The decision regarding allotment of coal blocks to public sector companies and allocation by auction to private and public sector companies as well as earmarking of blocks for various eligible sectors is made keeping in view the contemporary requirement of the sector at the time of earmarking.

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