The coal ministry has expressed concerns over slow pace of development by the allottees of coal blocks for captive use. Since 2003, 196 blocks have been awarded to both the public and private sector players.
During 2008-09, coal production from such blocks declined by 17% to 30 mt against the target of 36 mt. The ministry has now set an ambitious target of 104 mt for 2011-12, the terminal year of the 11th Plan. It has asked NTPC, state and central PSUs as well as the private players to make all out efforts to achieve the target. The ministry also wants the state governments to play a proactive role.
Sources told FE the ministry has asked the allottees, whose mines have been approved, to start production as early as possible. The ministry has called upon the state governments to extend help to the captive block allottees. ?To achieve the target of 104 mt for 2011-12, it requires a growth rate of around 35-40% in captive block segment alone. This can only be achieved if the concerned block allottees take necessary initiatives with earnest effort to develop the mines. Otherwise, the ultimate objective behind captive coal blocks allocation will be defeated,? the ministry said. It must be mentioned here that the government has projected a total coal production of 600 mt by end of 11th Plan.
According to the ministry sources, during 1993-2003, in all 27 companies/PSUs were allocated 40 coal blocks out of which 19 blocks were allocated till 2002 and 21 bocks in 2003 itself. One block namely Takli-Jena-Bellora (south) allocated to Central Collieries was deallocated. Out of 39 blocks, 23 coal blocks started production by March 2009.
During the last year of 10th Plan and the beginning of 11th Plan in 2007, in all 52 blocks were allocated comprising 35 to PSUs and 17 to private companies. In most these blocks, the coal ministry has observed that the progress was not satisfactory while in some cases the ministry has sought the intervention of respective state governments to expedite the mining and production.