The Coal Ministry on Wednesday allocated 14 new mines to public sector power companies that would fire nearly 31,800 MW with an investment of Rs 1,60,000 crore.
The blocks are being offered on the basis of applications, not bids. However, they would be governed under Competitive Bidding of Coal Mine Rules, 2012.
“These 14 blocks have geological reserves of 8,311 million tonnes capable of yielding about 159 million tonnes coal production a year, which will cater to about 31,800 MW power generation capacity. These coal block allocations to Government sectors will lead to an investment of more than Rs 1,60,000 crore in the power sector with consequential multiplier effect in other sectors of the economy,” the Coal Ministry said in a statement.
The country’s biggest power producer, NTPC, has benefited the most by bagging four blocks with estimates reserves of around 1,995 million tonnes.
Other State-run utilities in Odisha, Jammu and Kashmir, Chhattisgarh, Uttar Pradesh, Rajasthan, Andhra Pradesh, Karnataka, Madhya Pradesh, Punjab, and Haryana, among others have been allotted blocks. At this moment, the Government has not charged any fees for these blocks, as many of these are not completely explored, and it is difficult to determine the reserve price for unexplored blocks.
The Ministry said 318 applications were received for 18 blocks. Of these, 276 applications were found to be complete. For the 14 blocks earmarked for the power sector, a total of 235 applications were submitted. “After scrutiny and verification of facts and other important parameters, 128 applications were considered eligible,” it added.
The companies are categorised based on the available reserves and requirement for the end-use plant. For example, Deocha-Pachami block in West Bengal with 2,102 million tonnes reserves has been given to six different State power firms.