Lok Sabha Question No. 209 (UNSTARRED), answered on 2022-02-02
Subject: Auction of Coal Blocks
Ministry: COAL
Asked by: Uttam Kumar Nalamada Reddy

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA

UNSTARRED QUESTION NO. 209 TO BE ANSWERED ON 02.02.2022

## AUCTION OF COAL BLOCKS

209. Shri Uttam Kumar Reddy Nalamada:

Will the Minister of COAL be pleased to state:

- (a)  whether  the  Government  has  decided  to  auction  four  coal  blocks  of  Kalyan Khani  Block-6,  Koyagudem  Block-3,  Sathupalli  Block-6  and  Shravanapalli instead of allocating the same to the Singareni Collieries Company Limited (SCCL) in Telangana;
- (b) if so, the details thereof alongwith the reasons behind the decision;
- (c) whether the Government has consulted the Board of Directors of SCCL before taking such a decision;
- (d) if so, the details thereof and if not, the reasons therefor;
- (e) the expenses incurred and the outcomes of the exploration exercise undertaken by the SCCL of these four coal blocks;
- (f)  whether there is any application of SCCL pending for allocation of these coal blocks in the Ministry of Coal and if so, the details thereof; and
- (g)  whether  the  Government  has  any  plan  to  allocate  these  four  coal  blocks  to SCCL and if so, the details thereof?

## ANSWER

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

- (a)  to  (d):  The  04  coal  blocks  viz.  Kalyan  Khani  Block-6,  Koyagudem  Block-III, Sathupalli  Block-III  and  Shravanapalli  located  in  the  State  of  Telangana  have been 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.  The  decision  had  been  taken  in  pursuance  of  the  following recommendations of High Level Committee, constituted under the Chairmanship of Vice Chairman, NITI Aayog on Coal Sector:

Clause  7.4.ii: Ministry  of  Coal  shall  gradually  shift  towards  allocation  of  coal blocks  through  auction  only.   After  one  year  the  direct  allotment  route  shall  be closed  except  under  exceptional  circumstances  to  be  determined  by  Ministry  of Coal. PSUs may participate in auction and take the block.

SCCL is a State PSU (Joint Venture of State Government of Telangana and the  Government  of  India  with  51:49  equity)  and  the  Ministry  holds  that reservation  of  coal  blocks  for  SCCL  will  become  a  precedent  for  others.  It  was decided that there was no need for such reservation.

Accordingly,  the  04  coal  blocks  located  in  the  State  of  Telangana  were included  in  the  tranche  of  MMDR  coal  blocks,  after  following  the  due  process, and directions were issued to Nominated Authority on 10.08.2021 for allocation through auction for sale of coal.

Auction for the above coal blocks was held by the Nominated Authority on 15th  December,  2021.  In  respect  of  these  4  coal  blocks,  Office  of  Nominated Authority has  informed  that  no  bid  was  received for Sattupalli Block-III, Shravanapalli  and  Kalyan  Khani  Block-6  and  the  auction  has  been  annulled. These coal mines are again put up for auction. They have further informed that one bid was received for Koyagudem Block-III. As per policy, single bids are not accepted in the first attempt.

- (e):    Block-wise details of coal resources and expenses incurred by SCCL are as under:
- (f):  Requests  were  received  from  SCCL  for  allocation  of  these  coal  blocks. However, with the decision of the Government to offer these blocks for auction for sale of coal, applications of SCCL stand disposed off.
- (g):   These  four  coal  blocks  have been offered for allocation through auction for sale of coal in the 3rd Tranche and 4th Tranche of auction under the Mines and Minerals (Development and Regulation) Act, 1957. Along with others, SCCL may bid for these coal blocks.
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| S. No.   | Block Name           |   Measured Resources (in MT) |   Cost incurred by SCCL (with base March, 2019) in Rs. Crores |
|----------|----------------------|------------------------------|---------------------------------------------------------------|
| 1.       | Kalyan Khani Block-6 |                        71.87 |                                                         12.61 |
| 2.       | Koyagudem Block-III  |                       119.6  |                                                         17.59 |
| 3.       | Sathupalli Block-III |                        69.65 |                                                          7.97 |
| 4.       | Shravanpalli         |                       219.58 |                                                         20.88 |
|          | Total                |                       480.7  |                                                         59.04 |