Lok Sabha Question No. 2 (STARRED), answered on 2022-12-07
Subject: Auction of Coal Blocks
Ministry: COAL
Asked by: Venkatesh Netha Borlakunta, Gaddam Ranjith Reddy

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

## STARRED QUESTION NO. 2 TO BE ANSWERED ON 07.12.2022

## Auction of Coal Blocks

## *2      SHRI VENKATESH NETHA BORLAKUNTA: DR. G. RANJITH REDDY:

Will the Minister of COAL be pleased to state:

- (a) whether the Government proposes to auction 38 coal blocks in the country;
- (b) if so, the details thereof, State-wise;
- (c) whether  the  States  concerned  requested  for  allocating  coal  blocks  to  the  coal  PSU situated  in  that  State  for  exploration  at  a  cheaper  rate  in  view  of  availability  of technology, machinery, cheap labour, etc., available with that coal 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.2 TO BE ANSWERED ON 07.12.2022 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 Coal Mines (Special Provisions) Act, 2015 [CMSP Act] and Mines and Minerals (Development & Regulation) Act, 1957 [MMDR Act].  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 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) 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) Requests  also  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) 04 coal blocks viz. Kalyan Khani Block-6, Koyagudem Block-III, Sathupalli Block-III and Shravanapalli located in the State 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 Government of Telangana  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. Both of these coal mines, now stand allocated under commercial auction scheme to Assam Mineral Development Corporation Limited.

It may be stated that the High Level Committee in 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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ANNEXURE 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 |