KOLKATA: Centre wants public sector companies to take up commercial coal production like Coal India or Singareni Collieries and has lined up nine coal blocks, the entire produce from which can be sold in the open market. In contrast, private entities can sell only about 25% of the produce from the blocks on offer for them.
This is the first time the government is offering blocks to public sector companies for selling their entire production in the open market.
Coal India, which can also bid for these blocks, however, is not open to applying since it feels it has enough reserves under its command area to produce its targeted numbers over the next several years, a senior Coal India executive said.
Enabling notification from the Centre for government companies to sell their entire produce in the open market was made in February 2018 after it was passed by the Cabinet. These blocks on offer relate to the 204 blocks included under the Coal Mines Special Provision Coal Mines (Special Provisions) Act, 2015.
Additionally, the Centre has also offered six blocks to
public sector entities for captive power generation and steel production.
However, they are also open to selling 25% of the annual production in the open
The blocks on offer are under sixth, seventh, eighth and ninth tranche of allotment. According to the notification for allotment, sixth tranche is offering five coal mines to PSUs for captive power generation; eight tranche of allotment is for one block meant for captive consumption in steel production.
The seventh and ninth tranche of allotment for eight and one coal mines respectively are for coal sales in the open market.
Mines on offer from which entire production can be sold in the open market are Sayang, Panchbahani and Morga III from Chhattisgarh, Tokisud North, Patratu, Rauta Closed Mine, Sugia Closed Mine from Jharkhand, Dahegaon/Makard Hokra-IV from Maharashtra and Anesttipali from Telangana.
These blocks hold a total reserve of around 839 million tonnes. Patratu is the largest with geological reserves of about 450 million tonnes, followed by Sayang at 150 million tonnes and Tokisud North holding around 92 million tonnes of geological reserves. Morga III and Anesttipali hold reserves of 35 million tonnes and 27 million tonnes respectively.
Rest of the blocks like Panchbahani, Sugia Closed Mines and Rauta Closed Mines hold small reserves of 11 million tonnes, 2 million tonnes and 1 million tonnes respectively. Mines would be allotted to public sector companies on the basis of selection parameters set by the government.
Source: Economic Times