Disappointed with the slow pace of coal production from captive coal blocks, the coal ministry has written a letter to coal-rich states Chhattisgarh and Orissa urging them to expedite the process of forest clearances, land acquisitions and mining leases.
Moreover, the additional secretary at the coal ministry is likely to meet representatives of various allocatee companies on Thursday and Friday.
In Orissa, of 22 captive coal blocks allocated so far, production has started only at one block. Production from 14 blocks in the state could not be started due to non-receipt of various clearances from both central and state governments.
Companies such as Utkal Coal Ltd, which was to start production back in November 2001, is still awaiting forest clearance and mining lease.
The government is expecting 25.1 million tonne coal production from captive blocks in Orissa, which is roughly 25% of India?s total production from captives mines.
In Chhattisgarh too the scenario is not different. Of 20 coal blocks allocated so far in the state, only 6 blocks have started production. Production from nine blocks could not be started due to clearance issues from the Centre and state government. Five blocks in the state still remains unexplored even after application for prospecting licence for exploration of the blocks have already been submitted to the Chhattisgarh Government.
Coal ministry is expecting a total production of 26.28 million tonne from these 20 blocks in Chhattisgarh, which is 26% of the total production from captive mines throughout the country during 2011-12, the terminal year of the 11 th Plan. It generally takes 3 to 4 years, since the date of allocation of blocks, to start production.