Coal Ministry De-Allocates Six Coal Blocks over Unsatisfactory Development

Coal Ministry has decided to de-allocate coal blocks which were previously allocated to specific power companies for catering the coal requirements of their proposed Ultra Mega Power Projects.

The ministry had already specified that allocation/mining lease of a particular block may be canceled on the following grounds:

(a) Unsatisfactory progress of implementation of end-use power plant.
(b) Unsatisfactory progress in the development of coal mining project.
(c) For breach of any of the conditions of allocation.

Concerned with the long delay in development of coal block, Ministry had issued show cause notice to the respective coal block owners, seeking reason for the same.

However, after discovering that no significant progress were made to operationalise the coal blocks prior to their allotment period long-ago, the ministry had decided to withdraw mining rights from their respective owners.

Source: Coal Ministry

Of the six coal blocks that have been de-allocated, two blocks apiece were located in Chhattisgarh and Jharkhand state, while one block each was offered from Odisha and Maharashtra.

It is pertaining to note that the underlying blocks belonged to the list of 10 coal blocks that were not cancelled by the Hon’ble Supreme court. Notably, the remaining four blocks in the list which were not cancelled, namely-Pakri Barwadih, Tasra, Moher and Moher Almori Extn, have already been operationalise by their owners.

Of late, Indian government has prioritize allocation of coal blocks to end-users, which was the case in the recently concluded block auction wherein 5 blocks were approved for allotment after a gap of 4 years. It is likely that these de-allocated coal blocks would be put up for sale in the subsequent auctions to further boost coal production in the country.