By TIOL News Service

NEW DELHI, JUNE 22, 2013: THE Government has proposed to offer seven Open Cast Mines of about 25 million tonnes capacity to Mine Developer-cum-Operators (MDOs) by this year end to increase coal production. Bedsides this, 14 blocks for power and 3 for mining have been put on offer recently under Government Dispensation Route and allocation of these blocks will be completed shortly. This was stated by Union Coal Minister, Mr Sriprakash Jaiswal, while addressing the inaugural session of the ‘National Coal Conference’ organized by the ASSOCHAM here in New Delhi yesterday. He said that some more blocks will be offered to private sector shortly to ensure increased availability of coal in the country.

The Minister said that environmental issues, land acquisition and R&R issues, evacuation constraints and law and order problems in some coalfields are the critical issues in enhancing coal production. Even captive coal blocks have failed to meet the production targets for the above reasons. He said that to achieve the projected growth in production a number of new projects are planned to be taken up in PSU coal companies and a number of coal blocks have been allocated to various private and government companies and few more are in the pipe line for allocation. Besides, supplies would also need to be made good through imports.

The Minister said that the autonomy extended to the public sector coal companies has also not resulted in the desired growth in production. They need to review their performance internally and evolve appropriate strategies in addressing the current shortage situation. Government is there to help them in policy matters but onus for improving operational issues lies with them.

He said taht technology development is critical in enhancing production. With a view to ensure better production, productivity and safety coal companies need to focus more on modernization and technology development. Price of coal in India is far below the international coal prices and the same needs to be rationalized for avoiding wastage and in efficient use of the same, he added.

The Minister said that environmental footprint of coal mining needs to be reduced by adopting international best practices. Proper reclamation of mined out land and creating economic value to the same with a view to hand over the same back to the society is critical for sustaining the coal mining activities in times to come. Similarly, coal usage also needs to be made more environmental friendly through adopting clean coal technologies and improving efficiency levels.

He said that for increased transparency in Coal Block allocation the provisions of MMDR Act have been amended and new set of Rules have been framed for allocating new blocks through competitive bidding. Recently 14 blocks for power and 3 for mining have been put on offer under government dispensation route and allocation of these blocks will be completed shortly. Few more blocks for offer to private sector are in the pipeline.

The Minister also said that a draft Bill on Coal Regulatory Authority has been prepared based on the recommendations of various Committees and Experts Groups. A Group of Ministers constituted by the Cabinet has discussed the draft Bill in detail and has forwarded the final draft to the Cabinet for approval. Coal Regulatory Authority will ensure transparency in pricing, quality & supply of coal. It will also have the powers to resolve the disputes between the producers & consumers. I am confident that this draft bill will be approved by the Cabinet very soon.