With already five captive blocks turning causality to coal scam and subsequent deallocation, staterun Coal India Ltd (CIL) has expressed its willingness to accept and come up with an action plan on the deallocated coal blocks.
“We are anticipated to get these blocks. If CIL gets these blocks, we will come up with an action plan first on how to go about it. CIL is well prepared to produce from these blocks,” S Narsing Rao, Chairman and Managing Director, CIL told Business Standard.
Later, after the company’s annual general meeting here, Rao clarified, “There has been no assurances from the Centre on this. This is our understanding we will get most of the blocks.”
Till now, the inter-ministerial group (IMG) tracking the coal block allocation scam has recommended deallocation of seven blocks. This include Bramhadih by Castron Mining, Chinora and Warora (south) by Fieldmining & Ispat, Lalgarh (north) being developed by DOMCO Stainless Fuels and JSW’s Gourangdih block.
Meanwhile, coal minister Sriprakash Jaiswal is likely to deallocate another two blocks owned by SKS Ispat and Bhushan Steel in Rawanwara North and New Patrapara.
“We will have to look at whether these blocks are explored or not. If they are explored and have already got clearances, we can goahead and produce. Otherwise, it will take some time for exploration and then for clearances. That is why, we are looking for an action plan on this,” he added.
According to CIL, all these blocks were not rejected by CIL but some were surrendered for a particular time period. About 57 blocks were mentioned in the Comptroller and Auditor General report tabled on August 17, that claimed that irregularities in allocations have cost Rs 1.86 lakh crore loss to the country’s exchequer.
Meanwhile, the impact of diesel price on the company would be around Rs 600 crore. “Normally, the impact of one rupee hike in diesel price is about Rs 120 crore annually. So, following this recent hike, the production cost is likely to go up by Rs 600 crore,” Rao added. However, the company is not considering any hike in coal price at the moment.