Lok Sabha Question No. 15 (STARRED), answered on 2022-02-02
Subject: Auction  of Coal Blocks
Ministry: COAL
Asked by: Venkatesh Netha Borlakunta, Dayakar Pasunoori

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA STARRED QUESTION NO. 15 TO BE ANSWERED ON 02.02.2022

## Auction of Coal Blocks

## *15      SHRI VENKATESH NETHA BORLAKUNTA: SHRI PASUNOORI DAYAKAR

Will the Minister of COAL be please to state:

- (a)        whether the Government proposes to auction 38 coal blocks in the country;
- (b)        if so, the details of the areas/States where these 38 coal blocks are located;
- (c)       whether  the  States  concerned  have  requested  for  allocating  coal  blocks  to  the  coal PSUs  situated  in  those  States  for  exploration  at  a  cheaper  rate  due  to  availability  of technology, machinery, etc. with these PSUs; and
- (d)       if  so,  the  constraints  faced  by  the  Government for  allotting coal blocks to such coal PSUs?

## ANSWER

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

- (a) to (d): A statement is laid on the Table of the House.

## STATEMENT IN REPLY TO THE LOK SABHA STARRED QUESTION NO. 15 TO BE ANSWERED ON 02/02/2022 REGARDING AUCTION OF COAL BLOCKS

(a) & (b)   The Ministry of Coal had completed the auction process for  38 coal mines in first round  of  auction  for  commercial  mining  which  was  launched  on  June  18,  2020  under CM(SP) Act, 2015 and MMDR Act, 1957. The auction process  received a good  response from the bidders. Out of 38 mines put on auction, 20 mines were successfully auctioned with a  success  rate  of  53%.  List  of  said  38  coal  mines  is  given  at Annexure enclosed.

(c)  &  (d)     No  request  from  States  has  been  received  for  allocating  coal  blocks  to  the  coal PSUs  for  exploration.   However,  several  requests  have  been  received  from  various  State Governments for allotment of coal blocks to their PSUs for extraction  of  coal.  Some  coal blocks  had  been  allotted  against  such  requests.   Some  requests  which  were  received  from State Governments for allotment of coal blocks to their public sector entities but could not be acceded to are as under :- i.  Several requests from Hon'ble Chief Minister, Chhattisgarh, Secretary, Mineral Resource Department, Chhattisgarh and Chhattisgarh Mineral Development Corporation were received from  time  to  time  for  identification  of  4  coal  blocks  namely  Tara,  Morga-I,  Morga-II  & Durgapur-II/Sarya  for  allotment  for  sale  of  coal  and  to  give  directions  to  Nominated Authority for inviting NIA for the blocks so identified. Current Status of the above 4 coal blocks is as under:

*Tara & Morga-I - As per MoEF & CC, these mines are falling under area  which needs to be  conserved  and should not be considered for mining. Matter in respect of Tara coal mine is sub-judice in Hon'ble Supreme Court and order of status -quo has been passed.

*Morga-II  -  Directions  of  the  Central  Government  were  issued  to Nominated  Authority  for  conducting  auction  of  coal  mines  under CM(SP)  Act,  2015  for  sale  of  coal  including  Morga-II  coal  mine. However, as requested by Government of Chhattisgarh, the same was withdrawn from the auction process.

*Durgapur-II/Sarya -Allotted to Karnataka Power  Corporation Limited for end use Power.

ii.          Several requests have been received from time to time from Hon'ble Chief Minister, Arunachal  Pradesh  for  allotment  of  Namchik  Namphuk  Coal  mine  to  Arunachal  Pradesh Mineral Development & Trading Corporation Limited [APMDTCL]. In this regard, as per the provisions of Coal Mines (Special Provisions) Act, 2015, there is a prescribed process for allocation of coal mines under which coal blocks can be allotted to State Govt. Companies through  the  Notice  Inviting  Applications  (NIA)  route  only,  unlike  provisions  for  Central Government companies. Accordingly, APMDTCL may apply for allocation of coal blocks as and  when  applications  are  invited  for  allocation  of  coal  blocks/mines  through  NIA  by Ministry of Coal/Nominated Authority. APMDTCL may also participate in auction of coal mines as and when NIT is floated by Ministry of Coal.

- iii.       Recently, 04 coal blocks viz. Kalyan Khani Block-6, Koyagudem Block-III, Sathupalli Block-III and Shravanapalli located in the Sate of Telangana were offered for allocation by way of Auction for Sale of coal under the provisions of  Mines and Minerals (Development and  Regulation)  Act,  1957  and  the  rules  made  thereunder.   Thereafter,  the  State  Govt.  of Telangana has requested to cancel the auction of these 04 coal blocks and to allocate them to SCCL.  However, as per the extant policy followed by Ministry of Coal, all the coal blocks are now being offered for allocation by way of auction for sale of coal.  Further, the State Govt.  entities  including  SCCL  may  participate  in  auction  and  take  the  block(s)  as  per prescribed norms.
- iv.           Directions have also been issued to Nominated Authority for allocation of 02 coal blocks, viz., Garampani and Koilajan located in the State of Assam by way of auction for sale of coal which were also requested by the Govt. of Assam for allocation to its State PSU. The State Government was informed that their PSUs may participate and bid for auction of coal blocks.

It may be stated that the High Level Committee vide their report dated 07.01.2020 has also recommended that Ministry of Coal shall gradually shift towards allocation of coal blocks through   auctions  only.  After  one  year,  direct  allotment  route  shall  be  closed  except  under exceptional circumstances to be determined by Ministry of Coal and PSUs may participate in the auction of coal blocks. Thereafter, since the year 2020, coal blocks have been offered for auction only.

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## List of 38 coal mines put up in first round of commercial auction

| S. No.   | Coal Mine                                             | Act              | State          |
|----------|-------------------------------------------------------|------------------|----------------|
| 1        | Brahmadiha                                            | CM(SP) Act, 2015 | Jharkhand      |
| 2        | Chakla                                                | CM(SP) Act, 2015 | Jharkhand      |
| 3-4      | Chendipada &Chendipada II                             | CM(SP) Act, 2015 | Odisha         |
| 5        | Chitarpur                                             | CM(SP) Act, 2015 | Jharkhand      |
| 6        | Choritand Tiliaya                                     | CM(SP) Act, 2015 | Jharkhand      |
| 7        | Gare-Palma-IV/1                                       | CM(SP) Act, 2015 | Chhattisgarh   |
| 8        | Gare-Palma-IV/7                                       | CM(SP) Act, 2015 | Chhattisgarh   |
| 9        | Gondulpara                                            | CM(SP) Act, 2015 | Jharkhand      |
| 10-11    | Gotitoria(East) & Gotitoria(West)                     | CM(SP) Act, 2015 | Madhya Pradesh |
| 12-13    | Machhakata &Mahanadi                                  | CM(SP) Act, 2015 | Odisha         |
| 14       | Marki Barka                                           | CM(SP) Act, 2015 | Madhya Pradesh |
| 15       | Marki Mangli II                                       | CM(SP) Act, 2015 | Maharashtra    |
| 16       | North Dhadu                                           | CM(SP) Act, 2015 | Jharkhand      |
| 17       | Radhikapur (East)                                     | CM(SP) Act, 2015 | Odisha         |
| 18       | Radhikapur (West)                                     | CM(SP) Act, 2015 | Odisha         |
| 19       | Rajhara North (Central & Eastern)                     | CM(SP) Act, 2015 | Jharkhand      |
| 20       | Seregarha                                             | CM(SP) Act, 2015 | Jharkhand      |
| 21       | Sahapur East                                          | CM(SP) Act, 2015 | Madhya Pradesh |
| 22       | Sahapur West                                          | CM(SP) Act, 2015 | Madhya Pradesh |
| 23       | Shankarpur Bhatgaon II Extn.                          | CM(SP) Act, 2015 | Chhattisgarh   |
| 24       | Sondhia                                               | CM(SP) Act, 2015 | Chhattisgarh   |
| 25       | Takli-Jena-Bellora(North) &Takli-Jena-Bellora (South) | CM(SP) Act, 2015 | Maharashtra    |
| 26       | Thesgora-B/ Rudrapuri                                 | CM(SP) Act, 2015 | Madhya Pradesh |
| 27       | Urtan North                                           | CM(SP) Act, 2015 | Madhya Pradesh |
| 28       | Urma Paharitola                                       | CM(SP) Act, 2015 | Jharkhand      |
| 29       | Bandha                                                | MMDRAct, 1957    | Madhya Pradesh |
| 30       | Brahmanbil &Kardabahal                                | MMDRAct, 1957    | Odisha         |
| 31       | Dhirauli                                              | MMDRAct, 1957    | Madhya Pradesh |
| 32       | Dolesara                                              | MMDRAct, 1957    | Chhattisgarh   |
| 33       | Jarekela                                              | MMDRAct, 1957    | Chhattisgarh   |
| 34       | Jharpalam Tangarghat                                  | MMDRAct, 1957    | Chhattisgarh   |
| 35       | Kuraloi (A) North                                     | MMDRAct, 1957    | Odisha         |
| 36       | Marwatola Sector-VI& Sector-VII                       | MMDRAct, 1957    | Madhya Pradesh |
| 37       | Phuljhari (East &West)                                | MMDRAct, 1957    | Odisha         |
| 38       | Urtan                                                 | MMDRAct, 1957    | Madhya Pradesh |