The coal ministry has decided to take the auction route for allotting captive coal blocks, while it wants to institutionalise a coal regulator within the 100 days work target the government has set for all ministries.
Shriprakash Jaiswal, minister of state for coal, said the ministry has decided that coal blocks for captive use should be allotted through auction so that there is more transparency in the system.
So far, 196 blocks have been allotted for captive use and most of them have not come to production. The ministry, during the earlier UPA regime, had even considered de-allocating 14-15 blocks.
According to Rajiv Sharma, additional coal secretary, notices have been served to parties not taking the initiative to develop the blocks. But he added that those parties would also get the opportunity to explain their stand.
However, there will be a coal regulator in place very soon, who will look into the “aspect of disciplined mining, increasing coal production, grading of coal as well as the issues of pricing,” Sharma said.
The ministry in its 100 days work target has prioritised setting up a coal sector regulator, wholly implement the newly formulated coal distribution policy and finalise the mode of operation for underground coal gasification. Setting a coal regulator needs cabinet clearance and that will be done within the 100 days work target, Sharma added.