Some private entrepreneurs had shown interest in the beginning. But most of the abandoned mines are located in isolated areas that lack infrastructure. Besides, CIL subsidiaries were also not keen to hand over the mines to the private sector as they were apprehensive about the rise of a new mafia gang if the abandoned mines reopened.

However, CCL had shown interest in handing over control of seven abandoned mines as it is overburdened with 16 sick collieries, mostly underground, that are incurring losses of over Rs200 per tonne.

BP Singh, director, project and planning of CCL, told The Financial Express that the necessary formalities have been completed to hand over CCL's two leasehold mines - Jagaldagga in Palam district and Jainti Khas in Deogarh district - to the Bihar government as the mines have become uneconomical. He said the state government is likely to hand over these two mines to Bihar State Mineral Development Corporation (BSMDC) on a lease basis.

When contacted, BSMDC managing director DK Singh said though both the mines have small reserves, the coal quality is of C&D category.

When asked why the corporation was taking the two mines on lease when CCL identified them as uneconomical for mining, Singh said they are ready to run any uneconomical CCL mine and turn it economical. CCL's overhead cost being very high, mining in these mines becomes uneconomical.

Meanwhile, despite non-availability of takers for coal blocks in non-CIL areas, CIL subsidiary Central Mine Planning & Design Institute (CMPDI) iscontinuing drilling in the non-CIL blocks with budgetary support from the Union government.

A CMPDI source told The Financial Express that a total of 3.94 lakh metres is proposed to be drilled at an estimated cost of Rs 91.18 crore in the Ninth Plan.