81 coal blocks to be awarded by January 2005, says coal secretary

The central ministry of coal and mines will award the 81 remaining coal blocks to prospective bidders within two months.

The ministry has formed a screening committee that would take stock of the situation every week for allotment.

"The government has already allotted 49 coal blocks to private players out of a total of 130. The process is to be completed in the next two months," said P C Parakh, secretary, department of coal, at the 'India Mining Summit' running parallel to the International Mining and Machinery Exhibition 2004 (IMME 2004) here.

Parakh said the ministry had sent show-cause notices to companies which had failed to develop allotted coal blocks for more than three years.

"The government has decided to take back mines from companies which had not utilised these for more than five years," he added.

The secretary claimed it took a maximum of three years for mining companies to get all necessary clearances and so to expect them to initiate mining within five years was not unjustified.

Referring to the enhanced target for production of additional 30 million tonne (mnt) of coal in the 10th Plan and additional 60 mnt in the next Plan period, Parakh said this was a huge opportunity for Indian mining equipment manufacturing companies in the next few years.

"The enhanced target during the 10th Plan would require fresh investment of Rs 20,000 crore", informed C D Arha, secretary of the department of coal and mines, who was also present.

"The ministry has asked Geological Survey of India (GSI) to explore the 8000km shoreline for possible mineral resources," he added.

"The government has set a deadline of 2012 to complete the search for mineral deposits. GSI has purchased equipment worth Rs 800 crore for the purpose", Arha pointed out.

This was in line of the Offshore Mining Regulation and Development Act, 2002.

Parakh welcomed the proposal for setting up a task force for regular interaction between private companies and government on major mining related issues.

Parakh promised government backing for more collaborative research on world-class mining technologies.