Coal news and updates

Telengana asks Centre to allot new blocks to SCCL

December 17: In view of the depleting reserves from the existing mines, the newly-formed Telengana government has urged the Union government to allot new blocks to Singareni Collieries Company Ltd (SCCL), a joint venture between the state and the Central government.

“The Telengana government has written a letter to the Government of India (GoI), asking for allotment of new blocks to SCCL. This may come under the provisions of the new Coal Mines (Special Provisions) Bill,” a senior official of SCCL told ICMW.

“The allotment may be made under Section 5 of the Bill which deals with allotment to public sector companies,” the official said.

To a question, he said the company would prefer new blocks in states like Jharkhand and Madhya Pradesh which are logistically proximate to Telengana.

He, however, ruled out SCCL’s participation in e-auction of blocks in February.

“Of course, we need new blocks, but don’t see much merit in e-auctions, especially when there is provision for free allocation to state-owned companies. Also, we feel there is lack of clarity in some portions of the Ordinance and the Bill,” he added.