Public sector entities will have the freedom to select coal blocks identified for them by the Government. The Coal Ministry wants to keep at least 20 blocks out of the auction pool for Government companies from the 74 to be put on offer in the first phase.

A senior Government official said, “As regards identification of the blocks that will be allocated, we will work on a partnership model. The public sector undertakings will have an option to select the blocks based on where their plants are and their requirements. If a Maharashtra state PSU needs a mine which is available in the State, there is no sense to give it to an Odisha PSU.”

Of the 204 blocks de-allocated after a Supreme Court order of September, 42 are operational (almost 20 belong to State Government companies) and 32 are ready to start production. There has been no activity in the remaining 130.

Public sector power producer NTPC is expected to get a major share. “We are trying to take steps that NTPC is self sufficient in coal. We want NTPC to be an end-to-end company. After reforms in the Electricity Act have taken place, there will be potential for new distribution companies, and NTPC can play a role here, ” the official said.

The official also said if needed the Government will further refine the recent Coal Ordinance, when it is presented before Parliament. The official expressed confidence that the Government will be able to get multi-party support.

As regards allowing commercial mining, it will not happen immediately. “The Government wants to address issues based on priorities – first on the agenda is to see that blocks which are already producing continue production and so on…,” another official said.

Officials in the Coal Ministry are optimistic that by 2017 it is possible to completely stop thermal coal imports.

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