Allocation of Captive Coal Blocks
The responsibility of developing the coal block as per the prescribed guidelines and milestone chart attached with the allocation letter 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 Government will take appropriate action to de-allocate the said block. Further, the allocatees have to submit Bank Guarantee which remains valid at all the times till the production from the coal block reaches its peak rated capacity. The State Govts. have been requested to form a Monitoring Committee headed by the Chief Secretary to facilitate expeditious development of coal/lignite blocks. The Coal Controller’s office monitors on regular basis the achievement of different milestones. 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. Based on the replies to the show cause notices, the Government takes decision on the de-allocation. This was informed by Shri Pratik Prakashbapu Patil , Minister of state in the Ministry of Coal while replying a written question in Rajya Sabha today.
The minister said that a total of 111 coal blocks have been allocated to various private sector companies (including coal blocks allocated to power projects under tariff based competitive bidding). Out of 111 coal blocks, 16 coal blocks have started production. The remaining coal blocks which have not started production so far, are in various stages of obtaining statutory clearances and mining lease, preparing mining plan, acquisition of land, procuring machinery and equipment etc. for both mining as well as end-use project.
The Minister also said that as on date, based on the recommendations of review committee meetings held, the Government has de-allocated 25 coal blocks and 3 lignite blocks. In case of Takli Jena Bellora (South Part) coal block allocated to M/s Central Collieries Company Ltd. (a private company) for captive use, the sale of coal in open market was reported to the Government. The Government after following the due procedure has since declared the mining lease of the said block as void. Based on the recommendations of review committee meetings held during 2009 and 2010, in principle decision was taken to deduct bank guarantee in respect of 18 coal blocks as per the guidelines in this regard.