The Group of Ministers (GoM) that gave a green nod to the Mahan coal block last month, has also recommended tapering linkages to the Essar and Hindalco projects. This means the power project developers that depend on the block will get fuel from Coal India till supplies from Mahan start coming in.

“The GoM asked the Power Ministry to include these projects in the priority list of Twelfth Five Year Plan and forward its recommendations to the Coal Ministry for consideration of tapering linkage,” said a Government official.

The Mahan coal block, at Singrauli, in Madhya Pradesh, was awarded to a joint venture between Essar Power and Hindalco for captive use for the planned 1,200 MW and 900 MW projects, respectively.

Stop-gap arrangement

The Power Ministry suggested to the GoM that as these projects would be commissioned within next few months, they may be given tapering linkages as it would take time to start coal output from the block. But, according to Coal Ministry, these projects are not included in the list of projects to be commissioned in the Twelfth Five-Year Plan period.

Clearing all doubts over the allocation of alternative coal blocks for companies whose captive mines were not given green clearances, the Government has decided that there exists no such option. The Coal Ministry has made it clear to the GoM that there are no provisions for allotment of alternative blocks. The issue was deliberated at the last GoM meeting to consider the environmental and developmental issues relating to coal mining.

Govt dispensation

The Coal Ministry has identified 54 coal blocks for allocation and these have been earmarked for various sectors as per the new procedure in ‘The Auction by Competitive Bidding of Coal Mines Rule,’ the Coal Minister, Mr Sriprakash Jaiswal, informed the GoM.

“Under this, there is no provision for allotment of alternate blocks. For companies such as Gujarat Mineral Development Corporation (GMDC), which could not proceed with development of Morga-II because of non-availability of forest clearances, it is possible to apply for another block under Government dispensation route,” Mr Jaiswal added.

GMDC had applied for allocation of Bhalumuda as the alternative block, but the proposal did not sail through. The fresh allocation will be considered under the Government dispensation route, according to the nodal Ministry.

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