The coal production scenario at the blocks awarded in 2014 is gloomy. According to a media report, coal production from the blocks had been very low; and the blocks awarded to the power sectors had produced nil.
In the first ever E-auction in 2014, 34 coal blocks were awarded to private companies. However, the production has not conformed to the expectations and is very less, which impacted the host states, which received barely 27% of the annual revenue they envisaged earning from these mines.
The government also had allotted 11 mines to state energy departments for meeting their power demand, but other than the Rajasthan state and NTPC, none of the mines or state-owned agencies has mined coal. Others who had received coal blocks were: the energy department of Punjab, West Bengal, Karnataka and Damodar Valley Corporation.In the Rajathan state, production at the two mines has recently increased to 8.2 MnT from 3.4 MnT in FY15. NTPC has started mining at Pakri Barwadih this year.
Punjab and West Bengal are fighting legal cases over the appointment of Mine Development Operators for their mines, causing the delay. Legal tussles also have stalled the production from coal mines allotted the private players.
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