The coal ministry had published a 30-point system notice for inviting applications regarding coal blocks allocation in December, 2012. This notice included in it, the assignment of highest points for “preparedness of plant” and “coal demand and supply gap in the state”.
Coal Block Allotment India
On Wednesday, July 3, 2013, the government allotted these 14 coal blocks to the selected applicants. The reserves exceeded around 8,311 MnT to power sector companies under the New Competitive Bidding of Coal Mines Rules which were notified in 2012. The allocation would bring in an investment of Rs 1.6 Lakh crore in the power sector.
The Ministry received a total of 318 applications out of which 276 were found complete in all respects. Further, in these 276 applications, 235 applications pertained to 14 blocks for power. A total of only 128 applications were finally considered eligible for these 14 blocks for power after proper scrutiny and verification of facts and other important parameters. These parameters included “company’s financials” which comprised of assessment of their net worth and turnover and also the progress of development of blocks allotted in the past to the applicant company. They were also scrutinized on the basis of their location of the end-used plant.
The allotted 14 blocks are capable of producing about 159 MnT of coal every year. This amount of coal can help in supply of 31,800 MW of power throughout the country. Out of the 14 allotted coal blocks, National Thermal Power Corporation (NTPC) has been allotted 4 blocks which have reserves of 1,995 MnT of coal. Other PSUs which have been allocated mines include Neyveli Uttar Pradesh Power Ltd, Odisha Thermal Power Corp, Jammu & Kashmir State Power Dev Corp, Chhattisgarh State Power Gen Co Ltd, Andhra Pradesh Generation Co, Maharashtra State Power Generation Co, Rajasthan Vidyut Utpadan Nigam and Punjab State Power Corp Ltd. The largest of the 14 blocks, Deoca Pachami in West Bengal, which has a reserve of 2,102 MnT coal has been allocated jointly to six states.
The coal blocks have been allocated without their reserve prices being worked out because they are not explored yet by the government. Reserve price will be taken from the companies after the exploration is done. The ministry is undertaking a commitment from the companies for a payment for reserves after exploration.