Thursday, March 31,
Government will award small coal blocks to State mining utilities of host states to feed the fuel needs of local industries, a senior coal ministry official said.* The move will benefit coal-starved small- and medium-scale industries in states such as West Bengal and Jharkhand.
On Monday, coal minister Sriprakash Jaiswal had approved a policy for small and isolated coal blocks that are economically unviable but are enough to feed local demand. These mines hold reserves of 5-10 million tonnes.
“Coal mined out of these small and isolated blocks would be available to local industries, addressing to an extent the huge demand-supply gap for the fuel. The blocks would be awarded to state mining utilities under government dispensation route,” the official said on condition of anonymity.
According to the official, there are about 20 small and isolated coal blocks with reserves of up to 10 million tonnes. They have not been explored, as the reserves are considered small for scientific and economic development. Also, coal from such blocks cannot be transported by railway.
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