The Union ministry of coal has communicated to the West Bengal government that coal blocks pending to be allocated will have to be auctioned according to the new Mines and Minerals (Development & Regulation) Act being finalised.
State commerce and industry minister, Nirupam Sen, said, “The coal minister has written to us saying that there will be a new policy by which the coal blocks will be auctioned. We do not know whether the companies that are putting up units in the state will be given priority.” He was speaking at the Steel Conclave organised by the Confederation of Indian Industry (CII).
Sen and West Bengal chief minister, Buddhadeb Bhattacharjee had met the coal minister recently to impress upon him that the nine coal blocks that were pending for allocation should be done through the state dispensation route.
Around 15 blocks had been identified by the state government. “Till 2006, six blocks have been allocated,” said Sen.
“Everyday the companies that have projects come to me for coal but I cannot do anything about it. The reserves are in our state but the Centre has now decided that it will auction the blocks,” he added.
Coal happens to one of the key feedstocks for steel companies. “All the companies want to set up captive power plans to become competitive,” pointed out Sen.
Apart from brownfield expansion in public sector units, there are 10 proposed steel plants in the private sector involving an investment of Rs 1,09,550 crore. Some of the proposals also involve creation of substantial capacity in the power sector and cement sector. The capacity creation in steel would be 28.1 million tonnes.
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Sen said, earlier the freight equalisation scheme had taken away the state’s advantage relative to the rest of the country.
The Bengal government also wanted to change the monocity nature of development in the state. sen said, the government had already acquired land for steel projects in Panagarh and was going to acquire land at Salanpur in Bardhaman district.