Coal blocks to be allotted only through auctions: Govt

New Delhi: The Government on Monday said 136 coal blocks have been successfully auctioned since 2020 following the Niti Aayog's recommendations, and future allocations will also be done through a participative bidding process.

Replying to supplementaries during the Question Hour in the Rajya Sabha, Minister of State for Coal Satish Chandra Dubey said the government is ready to examine the Telangana state government's proposal to allot the Tadicherla coal block on an administrative basis to state-owned Singareni Collieries.

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"But, the state government of Telangana has to send a formal proposal giving reasons how this block is different from other blocks.

"If such a proposal comes, the government will take a decision in the interests of the people of Telangana as per law and after keeping the recommendations of the Niti Aayog in mind," the minister informed the house.

He said that after the recommendations of the Niti Aayog in 2020, the government has auctioned a total of 136 coal blocks, and Singareni has itself made a profit of Rs 6,000 crore.

"Then, why does it not participate in the auction process. Now, Coal India and other PSUs also participate in the auctions and take the Coal blocks. If the state government sends a fresh proposal and tells what is so special about that particular coal block, the government is ready to examine and take a decision," Dubey said.

Congress MP from Telangana Anil Kumar Yadav Mandadi asked why the allotment is not being made to Singareni, when the state government is giving proposals again and again, but still the government is asking for fresh proposals.

"When there is an enabled provision in law, why is the government is not allotting the Tadicherla coal block to Singareni Collieries," he asked.

The minister replied that in the past, too, the Government allotted three blocks to Singareni - Naini, Penagadapa, and New Patrapada.

"In 2022, the government could not work on them and gave them back to the Government of India. Only Coal block Naini is functional. If a letter had come in 2013, a lot of time has gone by, and they should send a fresh proposal again as to what is special about that coal block. The proposal will be freshly examined in the interest of the people of Telangana," he said.

The minister told the house that post 2020, 136 blocks have been allotted after successful auctions and revenue of Rs 43,000 crore would be received by the central government once coal production starts. This would also provide employment opportunities to 5 lakh people, he said, adding that 44 new companies have participated in the coal block auctions.

M Thambidurai (AIADMK) also asked why public sector undertakings were not being allotted coal blocks. The minister replied that all state governments are competent to participate in the auction process.

"If there is any special circumstance, then too the blocks would be attempted to be allotted through a participative process. Anyone giving more revenue and more price, we would give the coal block to them only," the minister said.

In his written reply, Minister of Coal and Mines G Kishan Reddy said, "All the coal blocks are being offered for allocation by way of auction for sale of coal. No coal block has been allocated to Public Sector Unit (PSU) through allotment route after June 2020".

"This is being done in the context of the High-Level Committee (HLC) headed by the Vice-Chairman, Niti Aayog on Mines, Mineral and Coal sectors, which was constituted on March 29, 2019, to give recommendations for enhancing exploration, domestic production, reducing imports and achieving rapid growth in exports of coal.

"The Ministry of Coal has accepted the recommendations made in the HLC report that all concessions for exploration and mining will be gradually shifted for commercial purposes. After one year of the acceptance of the said report, all auctions/allotments would be given for (i) commercial purpose only and, (ii) that after one year, direct allotment route shall be closed except under exceptional circumstances to be determined by Ministry of Coal and (iii) PSUs may also participate in auction of coal blocks," the minister said.

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