(a) the criteria laid down for allocation of coal blocks
in the country;
(b) whether the existing process of allocation of coal
blocks suffers from many loopholes;
(
(c) if so, the details thereof and the reasons
therefor;
(d) whether the Government intends to formulate a new
policy or to revise the existing one for the allocation
of coal blocks;
(e) if so, the details thereof; and
(f) the time by which the new/revised policy is likely
to be formulated and implemented?
MINISTER OF THE STATE IN THE MINISTRY OF COAL (DR. DASARI NARAYANA RAO)
(a) to (f): A statement is laid on the table of the House.
STATEMENT REFERRED TO IN ANSWER TO PARTS (A) TO (F) OF
THE LOK SABHA STARRED QUESTION NO. 311 ASKED BY SHRI
P.S.GADHAVI:
(a) : Coal blocks can be allocated under the
following dispensations:
(i) To Government companies for commercial mining under
Government company dispensation;
(ii) To private companies as well as public sector
companies for captive use in specified end uses such as
generation of power, production/manufacturing of iron &
steel, cement and syn gas through coal gasification and
coal liquefaction, under captive dispensation;
(iii) And to power projects to be developed on the
basis of tariff based bidding.
The broad criteria followed in allocation of coal blocks
under the aforesaid three dispensations are as followed:
(i) Government Company Dispensation – Under this
arrangement, allocations are determined on the basis of,
inter-alia, preference to the States which have not been
allocated any coal blocks earlier, priority to the host
States in order to encourage value addition within the
coal bearing State, past performance of applicants in
developing coal blocks, proximity of coal blocks to the
proposed end use projects, recommendation/support of
State Government concerned etc.
(ii) Captive Dispensation – Allocations are decided
taking into account, inter-alia, techno-economic
viability of end-use project, state of project
preparedness, compatibility in terms of quality and
quantity of coal in a block with the requirement of end
user and track record of applicant company,
recommendations of the State Government and
Administrative Ministry concerned etc.
(iii) For power projects to be selected through
tariff based bidding, coal blocks are earmarked on the
recommendations of Ministry of Power.
(b) to (d) The present system of allocation of coal
blocks for captive use is based on inter-Ministerial and
inter-Governmental consultations through a Screening
Committee. It has its own merits. However, as the number
of coal blocks available for allocation is declining and
the demand for the blocks is rising, selection of an
applicant has become more difficult, without adopting a
more specific objective criterion.
A proposal to introduce competitive bidding system
for allocation of coal blocks for captive use, through an
amendment in the Mines and Minerals (Development and
Regulation) Act, 1957, is under consideration of the
Government.
(e) & (f) Since the matter is still under consideration
of the Government and would require legislative approval,
it is not possible to indicate the details of the
proposed formulation and the time frame for its
implementation