Coal news and updates

‘No decision yet on offering blocks for merchant mining’

January 20: The government has not yet decided on whether it will offer some of the coal blocks from the balance 103 to be offered under e-auction in the second phase for merchant mining or non-captive purposes, Secretary (Coal) Anil Swarup has clarified.

“No. we haven’t yet decided,” Swarup told reporters in Kolkata when asked whether some of the balance 103 blocks to be put on offer in the second phase would be offered for non-captive purposes.

“That’s where we have a freedom. For Schedule II (42) and Schedule III (37) blocks, there was a stipulation of captive use. But so far as Schedule I is concerned, it does not say per se whether it is captive or non-captive,” he added.

All the 204 de-allocated coal blocks have been classified as Schedule I in the coal Ordinance issued in November last year and it is the universe. From that universe, 42 blocks were transferred to Schedule II and another 59 under Schedule III, making it a total of 101 blocks, the auction of which is likely to be completed by third week of April.

“So whatever 103 blocks are left in Schedule I, there is no stipulation of end-use in that. End-use stipulation stays with Schedule II and Schedule III blocks,” he said.

Asked if the government is considering plans to auction some blocks without end-use stipulation as there was a provision in the Ordinance to offer blocks for non-captive purposes as well, Swarup replied in the negative.

“No. We haven’t thought over it yet. The stipulation of commercial utilization was made because the government felt there was no point in keep going back to Parliament repeatedly. So it is an enabling provision, and if required, the government will consider it. So far we haven’t considered it. So that option is open, but whether we will exercise it or not will be discussed later. Right now I am too pre-occupied with the ongoing auctions to think in terms of commercial options,” Swarup added.