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India to review coal blocks identified for allocation

16th January 2018

By: Ajoy K Das

Creamer Media Correspondent

     

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KOLKATA (miningweekly.com) – India’s Coal Ministry will undertake a fresh review of 117 coal blocks that were identified in 2014 for development.

A committee, comprising representatives of the Coal Ministry, government-owned miner Coal India Limited and its consultancy arm, has been appointed to “identify coal and lignite blocks for allocation through auction and allotment through the preferential dispensation route”.

Most importantly, the mandate given to the committee empowers it to review and supercede recommendations of the previous committee, which had selected the 117 coal blocks in 2014 for development by government miners and the private sector.

It is possible that the number of assets up for development could be reduced, as the new committee’s mandate includes a review of the basis on which the blocks were selected and to identify blocks that had not been allocated, owing to insignificant reserves, inviolate areas, dense forest areas or an overlap with coal-bed methane reserves.

However, it could not be clarified from Ministry officials whether the review will impact the timeline of the government’s plans to throw open commercial coal mining to private miners and whether the auction process will start before the end of the current financial year.

POLISH INTEREST
Meanwhile, in a related development, Polish companies have expressed an interest in participating in commercial coal mining in India.

“There is strong conviction to look at India with more interest by Polish companies if conditions are right,” said Poland Deputy Minister for Foreign Affairs Mark Magierowski who is part of a delegation to a business summit in India this week.

He said that the Indian mining sector had been using Polish technology and equipment extensively and that many Polish companies were looking beyond Europe for market opportunities.

India’s Coal Ministry has set a target of domestic coal production of 1.5-billion tons a year by 2022 of which 500-million tons a year would be coming from private mining ventures.

India’s coal mining industry was nationalised in 1974.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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