Government contemplating auctioning 25 deallocated coal blocks

New Delhi: The Coal Ministry is considering auctioning 25 captive coal blocks which where taken back from the companies due to their failure in developing them. "There are 25 deallocated coal blocks where court cases have not been filed as per the information available. These coal blocks could be considered for allocation under the new dispensation," according to a recent official document.  

The ministry further said that the confirmation pertaining to the allocation of the mines would be made after getting the detailed exploration status of the mines. So far the government has deallocated 80 coal blocks. The mines were taken back after the recommendations made in this regard by earlier the review committee and later the inter-ministerial group on coal mines set up to review the development of the captive coal blocks.

Coal mine allocatees have filed 94 cases in different courts against the government orders for deallocation and Bank Guarantee deduction, the document said. "80 coal blocks have been deallocated. In addition, orders for imposition/forfeiture/deduction of bank guarantee have also been issued in 42 cases.

In a large number of cases, block allocatees have filed court cases against these orders and at present, 94 court cases in different courts have been filed," it added. Earlier the de-allocated coal blocks were given for development to Coal India Limited, sources said. An inter-ministerial group (IMG) was formed in 2012 to review the progress of coal blocks allocated to firms for captive use and recommend action, including any de-allocation for failure to develop them. Of the total 328 coal blocks identified for allocation for captive purposes, the government has so far allocated 218 blocks.