Centre identifies 28 coal blocks for state power utilities

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New Delhi, Oct 3: The government is considering allocation of additional coal blocks to state government mining undertakings in view of the prevailing shortage of coal. The coal ministry has identified 28 coal blocks to offer to state undertakings and firms like the Mineral Development Corporation and power utilities for undertaking coal mining.

Several states had complained to the Centre about non-availability of coal blocks, especially for captive use of their power sector utilities, leading to shortages in production. The latest move by the Centre would address the problem by providing coal blocks directly to state government companies for further transfer to state utilities, said the coal secretary, PC Parakh in his letter to all chief secretaries of states.

“While Coal India Limited (CIL) has made concerted efforts to meet the requirements of such consumers through e-auctions and allotments to state agencies, the state governments would be in a position to redress the problems to a great extent if they take up a few coal blocks for mining through their agencies. The coal so mined can be supplied to the industrial units and smaller consumers in their respective states,” added Mr Parakh.

According to the sources, the proposed 28 blocks are raw blocks where only regional prospecting has been done by the Geological Survey of India. This means that state mining firms would have to use their own resources to conduct thorough exploration at the mining sites and bring it to production stage.