Coal news and updates

No change visible yet in govt policy on block de-allocation

July 14: There is no change so far in the BJP-led UPA government’s policy towards de-allocation of captive coal blocks, if the recent comments of Piyush Goyal, Minister of State (Independent Charge) in the Ministry of Coal, Power and New & Renewable Energy, is concerned.

In reply to a question of Bhushan Lal Jangde in the Rajya Sabha recently, Goyal said, “Based on the recommendations of the then Review Committee and the Inter-Ministerial Group (IMG) now, the government has so far de-allocated 80 coal blocks.”

Goyal, however, did not give any direct reply to Jangde’s query on “by when the remaining allocations would be cancelled”.

The minister said the government periodically monitors and reviews the development of allocated blocks as well as end-use plants by the allocattee companies in the review meetings.

Further, an Inter-Ministerial Group (IMG) had been constituted on June 21, 2012 under the chairmanship of Additional Secretary (Coal) to review the progress of development of allocated coal/lignite blocks and associated end-use projects of the allocatees and make recommendations to the government, including recommendation for de-allocation, he said.

“Wherever delays are noticed, the government issues show-cause notices and advisories to such allocattees, cautioning them to bring the coal blocks into production as per the guidelines/milestones chart,” Goyal added.

In fact, these had been the standard replies of the Congress-led NDA government in the past.

Incidentally, Coalgate or the alleged irregularities in the allocation of captive coal blocks had been highlighted severely by Opposition political parties during the second half of the second term of the UPA government. A number of CBI cases have already been filed, but the agency has not yet filed any chargesheet in the case.

“The statement by Goyal in Parliament suggests that the new government has no plan, at least in the short term, to alter any policy so far as de-allocation of captive coal blocks is concerned,” feels an industry source.

Goyal, however, said the information is being collected on the allegations of mismanagement in several mines of Raigarh and Sarguja division in Chhattisgarh.