Press Information Bureau

Government of India

Ministry of Coal

26-November-2012 17:06 IST

The Government has de-allocated 15 coal blocks based on the recommendations of Review Committee which monitors the development of the coal block by the allocatee companies during the last two years i.e. 2010 & 2011 on account of lack of progress in the development of the block. In addition to above 3 blocks have been surrendered by the companies due to geo-mining difficulties and other reasons.

The responsibility of developing the coal block as per the prescribed guidelines and milestone chart attached with the allocation letter rests entirely with the allocatee company. Further, the allocatees have to submit Bank Guarantee which remains valid at all the times till the production from the coal block reaches its peak rated capacity. The Coal Controller’s office monitors on regular basis the achievement of different milestones. Government periodically monitors and reviews the development of allocated blocks as well as end use plants by the allocatee companies in the Review Meetings. Further, an Inter-Ministerial Group (IMG) under the Chairmanship of Additional Secretary (Coal) with representatives from the Ministries of Power, Steel, Law & Justice and Departments of Economic Affairs and Industrial Policy and Promotion has been constituted on 21.06.2012 which inter-alia would undertake periodic review and monitor the progress of allocated coal/lignite blocks and make recommendations on action to be taken including de-allocation, if required. Based on the recommendation of the above Committee action as deemed fit is taken by the Government.

This information was given by the Minister of State in the Ministry of Coal, Shri Pratik Prakashbapu Patil in a written reply in Rajya sabha today.

****

NCJ/SAMIR/RV

De-allocation of coal blocks for failure to meet development milestones reinforces allocatee obligations, bank guarantee requirements and monitoring mechanisms. The Government de-allocated coal blocks after a Review Committee found lack of development progress; some blocks were surrendered for geo-mining difficulties. Allocatee companies bear sole responsibility to develop blocks per prescribed guidelines and milestone charts and must maintain a bank guarantee until peak production. The Coal Controller monitors milestones, periodic Review Meetings assess progress, and an Inter-Ministerial Group conducts reviews and recommends actions including de-allocation.