To restart coal block auction, the government will coax companies to return the de-allocated coal mines, an official has said.
Of the 61 coal blocks, which were de-allocated by the government, only 8-9 blocks have been returned, and in a number of cases, the companies which were allotted coal mines have filed court cases against these orders. At present, 94 such cases have been registered.
According to a Power Ministry official, the government will persuade the companies to return those blocks so that the government can commence the auction process. The blocks, which have been given back by the firms, were not sufficient for tendering and would not attract bids, he said. “The auction process is stuck due to non-unavailability of worthwhile coal blocks,” the official said, adding that the 8-9 blocks might be retained by Coal India. So far, the government has de-allocated 80 coal blocks.
These mines were taken back after the recommendations made in this regard earlier by the review committee.
An inter-ministerial group (IMG) was formed in 2012 to review the progress of coal blocks allocated to firms for captive use and recommend action, including any de-allocation, for failure to develop them.
Of the total 328 coal blocks identified for allocation for captive purposes, the government has so far allocated 218 blocks.
