On Friday, the Coal Ministry refuted claims made by Telangana Industries Minister K T Rama Rao about preferential treatment for Gujarat in coal block allocation.

“It has come to the notice of the Ministry of Coal about allegations of giving preferential treatment to one state government in the allocation of coal blocks, which are false and not based on facts. There is no special rule or scope of giving special treatment to any one state. Therefore, the question of preferring one state as claimed is baseless and misleading,” the Ministry has said in a statement.

Rao had said that TRS will launch an agitation if the Centre moves ahead with its plan to auction Singareni coal mines. He said that a large number of lignite mines were allocated to Gujarat Mineral Development Corporation (GMDC) through the nomination method and questioned the Centre as to why coal mines were not being allocated to Singareni Collieries Company (SCCL).

Countering the claims, the Coal Ministry said that two lignite blocks were allotted to GMDC in 2015, while three coal blocks were allotted to SCCL (from 2015 to 2019), a government of Telengana PSU.

“It is important to bring to attention that out of the above three coal mines allocated to SCCL, the Pengaddppa and New Patrapara coal blocks have been surrendered by SCCL under the amnesty scheme of the central government, wherein penalties for the surrender of coal mines by PSUs have been waived off by the Centre,” it added.

The Naini block allotted to SCCLin 2015 is still not operationalised by the state government, even though the Centre has facilitated obtaining all the clearances, the union ministry countered.

Auction of coal blocks are being carried out through Mines and Minerals (Development and Regulation) Act, 1957, and the Coal Mines (Special Provisions) Act, 2015, the Union of India has undertaken regulation of mines and mineral development. Both these Acts provide for a transparent mechanism of mine allocation.

The most transparent mode of auction has been followed since the launch of commercial mining on June 18, 2020, under which all coal and lignite blocks have been given through an auction route for the sale of coal and lignite. No coal or lignite blocks have been given through the allotment route after the launch of commercial mining to any State or central PSU.