Government has allocated 14 coal mines to central and state PSUs, including four to NTPC earlier this month.

Initiating the process of allocation of lignite mines, the Coal Ministry has invited proposals from Gujarat and Rajasthan PSUs for allotting mines for commercial mining, under ground coal gasification.

The development follows the government allocating coal mines to central and state PSUs.

“The government has decided allocation of suitable lignite blocks to the state government companies located in the state of Gujarat and Rajasthan for mining of lignite/underground coal gasification (UCG),” according to a Coal Ministry document.

The five lignite blocks on offer are Panandhro extension, Bharkandanm and Ghala in Gujarat, Nagurda—Joranda in Rajasthan and Vastan (UCG block) in Gujarat, the Ministry added.

“The blocks available for allocations are under the subjects rules for specified end—uses i.e. power and commercial mining as well as taking up UCG,” it added.

“Accordingly, applications are invited from the government companies/corporations from the states of Gujarat and Rajasthan... Therefore the state governments are requested to advise their respective PSUs/undertakings to submit their applications,” it said.

Beginning the process of coal blocks allotment, the government has allocated 14 coal mines to central and state PSUs, including four to NTPC earlier this month.

The allocation of the blocks, having a geological reserve of 8,311 million tonnes (MT), will lead to an investment of more than Rs 1.6 lakh crore in the power sector, it said.

Of the four coal blocks allocated to NTPC, two are in Chhattisgarh and the remaining two in Odisha. The blocks have reserves of 1,995 MT of coal.

Other PSUs that have been allocated mines include Neyveli Uttar Pradesh Power Ltd, Odisha Thermal Power Corp, Jammu & Kashmir State Power Dev Corp, Chhattisgarh State Power Gen Co Ltd, Andhra Pradesh Generation Co, Maharashtra State Power Generation Co, Rajasthan Vidyut Utpadan Nigam and Punjab State Power Corp Ltd.