India to allocate 23 coal blocks

NEW DELHI, Dec. 31 (UPI) -- India's Coal Ministry says it is in the process of allocating 23 blocks to state-run and private companies for captive use.

The ministry said the allocation would be made as per the directions of the Energy Coordination Committee.

"ECC had recommended allocation of 81 blocks, with a total coal reserve of about 21 billion tons, of which the government has already allotted 51 blocks during 2007," said a ministry official.

The 44 blocks of the government monopolist Coal India Ltd. that are not scheduled for production during the 11th Plan have been de-allocated for allotment to others, he said.

During 2007 the Coal Ministry allocated 17 coal blocks to government-controlled companies for commercial selling without the restriction of captive mining.

The ministry also allocated 10 blocks to public-sector companies exclusively for captive mining for power generation. Another 15 blocks were allotted to private companies for captive use for power generation, the official said.

Out of 16 blocks earmarked for ultra mega power projects, three each were allotted to Orissa and Madhya Pradesh UMPP and one block for that in Jharkhand. Rajasthan Rajya Vidyut Utpadan Nigam Ltd. was allotted two blocks for power generation, the official said.

The screening committee for the Coal Ministry met in New Delhi to take a decision on the allocation of 23 blocks for captive mining to steel and cement sectors. A total of 172 coal blocks with reserves of 38 billion tons have so far been allotted to various private and public-sector companies, the official pointed out.