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GoI should bring state entities under NCDP: Jha

April 21: Even as the central government plans to allocate coal blocks to state entities for commercial mining, the miners should be made to follow the National Coal Distribution Policy (NCDP), said N C Jha, MD & CEO, ICVL.

“When the government is allocating blocks under commercial mining, this NCDP which is applicable for Coal India and SCCL should be applicable and extended to these commercial miners also. They should not be allowed to mine coal and sell at their wits,” Jha, a former chairman of CIL, told ICMW.

Coal Secretary Anil Swarup had recently said in Kolkata that the government will allocate coal blocks to state entities to ensure supply of coal to small consumers who cannot participate in linkages and are also facing difficulties in procuring coal through e-auction route.

For this purpose, Jha said, the government would need to modify NCDP which is applicable only for CIL and Singareni Collieries Company Ltd (SCCL).

“If that doesn’t happen and if there is no fuel supply agreement, then black marketing of coal will become a huge affair in the country,” he warned.

“What will happen is that for all the blocks, the state governments will engage some private companies for mining and they will allow them to sell coal. So then this coal will go into the market,” he explained.