The Hindu Business Line : 12 States allotted 19 coal blocks

In an attempt to speed up industrialisation in some States, the Centre on Tuesday allotted 19 coal blocks, with estimated reserves of 7.396 billion tonnes, to 18 State Government undertakings in 12 States and one to the central public sector MMTC Ltd. Granted under the Government dispensation clause, the companies would have the right to sell the coal to other customers and carry out further explorations, officials said.

West Bengal has received the maximum allotment amounting to 1.355 billion tonnes followed by Chhattisgarh with 1.15 billion tonnes.

The Ministry of Coal would issue the allotment letters by next week, officials said.

"The objective is to empower the States with coal so that they can move ahead with their industrialisation plans and increase coal production outside Coal India and Singareni," the Minister for Coal, Mr Sibu Soren told Business Line.

The State Governments have signed several MoUs (memorandum of understanding) for establishing industrial units. The availability of coal will help the States assure prospective investors of adequate power supply, he said.

The 19 blocks are spread over Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa and West Bengal.

Four States had earlier been allocated small blocks while seven States have been allotted coal blocks under this scheme for the first time. The States that have got allotments for the first time are Rajasthan, Tamil Nadu, National Capital Territory of Delhi, Jharkhand, Bihar, Haryana and Maharashtra.

The allotment for Delhi has been made particularly keeping in view the Commonwealth Games scheduled to be held here in 2010, officials said.

The allottee companies include 10 State mineral development corporations, which do not have any captive use and would sell all the coal while the other nine State electricity boards can use the coal for captive use as well as sell in the market, officials said.

More Stories on : Coal | States | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page