Coal blocks de-allocated on the recommendation of an inter-ministerial group (IMG) following its three-day meeting starting tomorrow will be handed over to state-run Coal India, sources said.

They said the Coal Ministry has already taken a decision on this front at a meeting, chaired by IMG head Zohra Chatterji, almost eight months back in January.

It has also been decided that CIL will develop these blocks through public-private-partnership (PPP) model.

Around 60 blocks having almost all the reserves cited by CAG (6.7 billion tonnes) can be cancelled and handed over to CIL for development immediately as the present allocatees have not concluded land acquisition, the sources said.

The IMG would be reviewing the progress so far been made during its three-day meeting starting tomorrow and is likely to submit its report to the Coal Secretary before September 10.

Subsequently, by September 15, the Coal Ministry has to submit its report on the matter to the Prime Minister’s Office.

However, the Coal Ministry would also simultaneously ask CIL to provide linkages for the projects belonging to the regulated sectors being set up on the basis of these blocks to compensate them. CIL will also be asked to sign fuel supply agreements, as per the existing policy.

“This is aimed at ensuring that the developers do not get affected, investments in end-use plants do not get stranded and investor sentiment is not affected,” a source said.

At the same time, it said other sectors will always have the option of participating in competitive bidding for coal blocks or importing coal to fulfil their requirements.

Though CIL is the world’s largest coal producer, it is grappling to meet the growing demand for the fossil fuel.

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