core sector communique

Development of Coal Blocks

216 coal blocks with geological reserves of about 50 billion tonnes have been allocated to eligible public and private companies under the Coal Mines (Nationalisation) Act, 1973. Out of that, 24 coal blocks have been de-allocated. Out of de-allocated coal blocks, two coal blocks were re-allocated to eligible companies under the said Act. In view of above, the net allocated blocks are 194 coal blocks with geological reserves of about 44.44 billion tonnes. Out of these 28 coal blocks have come into production. The rest of the blocks are in various stages of development. This information was given by the Minister of Coal, Shri Sriprakash Jaiswal in written reply to a question in Rajya Sabha today.

The Minister said that development of coal blocks involves a gestation period of 3 to 7 years for reaching the production stage and another two to three years for reaching the optimal production capacity. the responsibility of developing the coal block as per the prescribed guidelines and milestones rests entirely with the allocattee company. In the terms and conditions of the allocation letters, it is categorically mentioned that in the event of willful delay in the development of coal blocks and in setting up of the end use project, the Govt. would take appropriate action to de-allocate the said block. Government periodically monitors and reviews the development of allocated blocks as well as end use plants by the allocattee companies in the review meetings. Wherever delays are noticed, Government issues show cause notices and advisories to such allocattees cautioning them to bring the coal blocks into production as per the guidelines/milestones chart. The Coal Controller’s office also monitors on regular basis the achievement of different milestones. Based on the recommendations made by the Review Committees from time to time, 24 coal blocks have been de-allocated till date, the minister added.