Govt allocates 14 coal blocks to power companies via auction

The ministry of coal has allocated 14 coal blocks, with geological reserve of 8,311 million tonnes and capable of producing about 159 million tonnes of coal per annum, to power sector companies in six states,

These 14 blocks will cater to about 31800 mega Watt power generation capacity and lead to investments of more than Rs1,60,000 crore in the power sector, with consequential multiplier effects in other sectors of the economy, an official release said today.

The coal blocks were allocated on the recommendations of an inter-ministerial committee (IMC) after due deliberations at every stage with applicant state governments, host states where the coal blocks are located and the concerned administrative ministry, ie, the ministry of power and the Central Electricity Authority, the release said.

The coal ministry received a total of 318 applications, of which 276 applications were found to be complete in all respects. Out of these 235 applications pertained to 14 coal blocks for power.

After scrutiny and verification of facts and other important parameters, 128 applications were considered eligible for these 14 coal blocks for power.

Around 15 states and 6 central PSUs have been allocated coal blocks.  Some of the coal blocks, because of their size had to be given to more than one state.  Accordingly, the Deocha-Pachami block in West Bengal having a reserve of 2,102 million tonnes has been given to six different state power PSUs, the release added.