Question : ALLOCATION OF MINERAL BLOCKS

(a) whether the available mineral reserves are sufficient as per their requirements in the country;

(b) if so, the details thereof along with the rights available to the Union Government and the State Governments in regard to mining;

(c) whether keeping in view the prevalent corruption and irregularities in allocation of mineral blocks by the State Governments, there is any proposal to cancel allocation of the said blocks if so, the details thereof;

(d) whether the Government is contemplating allocation of the said blocks through tender or bidding system with a view to bringing transparency in the process; and

(e) if so, the details thereof indicating the present procedure being followed for allocation of mineral blocks in the country?

MINISTER OF THE STATE IN THE MINISTRY OF MINES (SHRI DINSHA PATEL)

(a) & (b) The degree of self-sufficiency in respect of various principal minerals during 2011-12 is given at Annexure. The State Governments are the owners of minerals located within their respective boundaries. The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India. As regards to Coal, the currently assessed coal resources in the country stand at 293 billion tonne, of which about 118 billion tonne are the proved reserve. At the current level of production of about 560 million tonne, these reserves are envisaged to last for over 100 years. Coal is a central subject and almost 90% of coal production in the country is through Public Sector Undertakings.

(c) As per available information from Ministry of Coal, CBI has registered Preliminary Enquiry cases to investigate the alleged irregularities in allocation of coal blocks to private companies from 2006 to 2009 and from 2004. Any action regarding de-allocation of any block will depend upon the outcome of the investigation by CBI.

(d) & (e) The Government has amended the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 in the year 2010 to provide for allocation of coal mineral blocks only through auction by competitive bidding. The grant of the other mineral concessions is as per the provisions of the Mines and Minerals (Development and Regulation) (MMDR) Act,1957.