The Fertiliser Ministry has approached the Coal Ministry for allotment of some mines to fertiliser plants in the upcoming allocation of blocks.
"The Fertiliser Ministry has written to the Coal Ministry and asked for some coal blocks for fertiliser plants," a source close to the development said.
Gearing up for fresh allocation of coal blocks cancelled by the Supreme Court, government would allot a total 101 mines, including 65 through auction, in the first phase.
As many as 36 blocks will be directly allotted to state-owned companies. The government had increased the number of coal mines to be auctioned or allotted in the first tranche to 101, from 92.
Of the 101 blocks to be alloted and auctioned in the first lot, 63 mines would be given to the power sector, while the rest would be for sectors like steel and cement.
Also. The Fertiliser Ministry is exploring the possibility of using coal gasification as alternative mode of feedstock for urea plants.
The mode seemed to be cost effective option and also help in removing all feedstock related supply issues of the industry, Fertiliser Minister Ananth Kumar had said last week.
