28 coal blocks allotment to spur exploration

In an attempt to increase coal mine exploration for power generation, the government is allotting 28 greenfield coal blocks with a total capacity of five billion tonnes, to government-owned companies.

"The government-company dispensation route has been adopted to help in overcoming the exploration problem. For allotments made under the captive coal mine route, exploratory activity is not allowed," a ministry official said.

Among the blocks to be allocated are Nuagaon Telisahi in Orissa, Latehar and Gomia in Jharkhand, Parsa and Morga I and II in Chattisgarh, Mara-II-Mahan in Madhya Pradesh, Icchapur in West Bengal and Qulte, Kunur, Lalganj and Sitarampur in West Bengal.

Companies that are allocated coal blocks can sell coal directly in the market, which is not the case under the captive coal block allotment process. This will help meet exploration targets and encourage development of captive coal mines.

For allocations under the captive coal block route, the coal needs to be sold to the local Coal India Limited (CIL) subsidiary at a price determined by the government.

Some of the applicants for the coal blocks are AP Genco, Jharkhand State Electricity Board, Tenughat Vidyut Nigam Ltd, Maharashtra Power Generation Company and Chhattisgarh State Electricity Board.