The Ministry of Coal is planning to auction about 25 Coal blocks which were taken back earlier from private firms owing to delayed in development programs.
De-allocated Coal blocks which is likely to be put on auction did not attracted any cases so far by the companies. Those blocks mainly involved small mines and also consists some large mines like Mahal & Rajbar in Jharkhand. Blocks can be auctioned to steel & cement companies or allocated to power industry under tariff-based bidding.
De-allocated Coal block were given to CIL for development. Under Mines & Minerals Act, which was recently amended, provides that Coal blocks can be allocated through auction.
Besides Jharkhand, the blocks proposed to be auctioned are spread across Chhattisgarh, Gujarat, Maharashtra & Andhra Pradesh.
Two Coal blocks Mahal & Tenughat-Jhirki proposed to be auctioned having capacity of 1,098 MnT & 215 MT respectively. Both are situated in Jharkhand and were earlier allocated to state-run Rashtriya Ispat Nigam Ltd (RINL).
Other big mines includes Rajbar in Jharkhand with 385 MT reserves, Pengedappa in Andhra Pradesh and Jainagar in Gujarat with 100 MT reserves each, and Agarzari in Maharashtra having 137 MT reserves.
The blocks having small capacity include Lohara East with 12 MT, Bhadhak West 38 MT Maharastra, Ansettipalli with 26 MT reserves and Punukula-Chilaka with 38 MT capacity in Andhra Pradesh.
The court has heard all concerned parties involved in allocation of mines, including seven states and association of mining companies. Out of the 218 allotted captive Coal blocks, the Coal Ministry has cancelled licenses of 80 blocks.
Almost all private companies have challenged Coal mine de-allocations and bank guarantee forfeiture in High Court of Jharkhand, Jabalpur, Chhattisgarh, Odisha & Delhi.
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