Coal news and updates

MoC discusses key lignite block allocation issues

August 5: A few key issues were discussed at the recently-concluded meeting on the allocation of lignite blocks, held under the chairmanship of the Secretary of Coal.

Five lignite blocks had been put on offer. Of this, 4 are located in Gujarat - namely Panandhro Extension (for power), Bharkandam, Ghala (for commercial mining) and Vastan (for UCG) and one block in Rajasthan - Nagurda-Joranda (for commercial mining).

These 5 blocks had been put on offer through an NIA in August 2013, seeking applications from the states of Gujarat and Rajasthan for allocation to government companies/corporations under “Auction by Competitive Bidding of Coal Mines, Rules, 2012.

The MoC said that of the other four blocks, B3, B1, D1 and D2 recommended for allocation by GIPCL, two - B1 and D2 – do not contain non-lignite bearing area. It was mentioned that, as the MoC cannot allocate non-mineralised areas, it will consider only the lignite bearing blocks, ie, B3 & D1 for allocation.  Accordingly, NLC was asked to submit the details of the lignite blocks, ie, B3 and Dl, within a week to MoC.

With regard to South of Rajpardi block in Gujarat, which was earlier earmarked for tariff-based bidding for power generation, it was decided that the block may be earmarked for allocation to government companies for the purpose of commercial mining in the state, based on the request of the government of Gujarat. Accordingly, applications may be invited by the MoC from government companies of the state of Gujarat.

On issues pertaining to the Nagurda-Joranda opencast lignite block earmarked to the government of Rajasthan for commercial mining, representative of Rajasthan State Mines & Minerals Limited (RSMML) informed that it had very limited lignite resources which cannot meet the requirement of the proposed power plant.

Accordingly, RSMML requested that the entire Nagurda block, having 232 mt, may be considered for allocation.

The allocation of Nagurda UCG block had been discussed at an earlier meeting where it had been recommended that a 51:49 JV be set up between RSPCL and NLC to carryout UCG studies. The MoU between NLC and RSPCL is under approval of the NLC board. However, it was decided that since RSPCL is interested in taking up the UCG area also for the purpose of power generation, the technical committee may review the requirement of RSPCL and a separate meeting will be convened to discuss the issue. After this issue is resolved fresh applications may be invited by MoC.