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Coal Ministry will cancel licenses for exploration of coal in 166 blocks as their allottees have failed to execute their promised exploration plans in them and outright refused giving of environmental and forest clearances to coal explorer on lines of ultra mega power plants.

Threatening this at ASSOCHAM organized International Coal Conference 2008, Minister of State for Coal, Mr. Santosh Bagrodia also announced that his Ministry has cancelled licenses for giving long term coal linkages to power generators of 22,000 MW of capacity for 11th plan period as these too have failed to explore coal either on their own and through joint venture with Coal India Ltd.

This decision, though has yet to be notified but the Coal Ministry has decided to take stringent actions and cancel licenses to various allottees for coal exploration for their non-performance, further disclosed Mr. Bagrodia.

The Minister pointed out that Coal Ministry had allocated 180 blocks for coal exploration in the last couple of years, of which only 14 blocks have become operational as far as coal production is concerned.  “The remaining blocks are still unexplored which sufficiently indicates reluctance of Indian Inc. on its part from not undertaking the promised exploration despite lapses of so many years and therefore the government has decided to cancel their licences”, said Mr. Bagordia.

The Minister rejected the demand of Indian Inc. for giving coal explorer environmental, forests and land acquisition clearances on lines in which the Union Coal Ministry has given such licenses for ultra mega power plants, arguing that Coal Ministry would not do it as industry is suppose to be much more efficient as compared to government.

The Minister said the primary energy requirement i.e. (commercial-coal, Oil, Natural Gas, Hydel, Nuclear and non-commercial fuel wood, dungcake, biogas etc) is growing at 5.8% while secondary energy (Electricity, Petroleum etc).  at 6.8% in the next two decades the primary energy growth will be over 5 times whereas secondary energy generation will be around 6-7 times.

The primary commercial energy requirement for 2031-32 is projected around 2 billion tones of oil equipment of which the share of thermal energy (coal) would be around 60%, said Mr. Bagrodia adding that the Coal Ministry would import nearly 4 million tones of coal in another 4 months out of total anticipated coal imports of 31 million for fiscal 2008-09. As regards to coal production by March 2009, the Minister exuded confidence that it would be around 515 million tones of which the share of Coal India would be around much above 480 million.

Speaking on the occasion,  Coal Secretary, Mr. C Balakrishnan said that the main emphasis of the government was on mass production technologies, improving productivity, supply of coal at best possible least cost.  The Ministry is keen to utilize new technologies like Underground Coal gasification, Coal Bed Methane and Coal to Liquid gas etc.  for this purpose, abandoned mines are also identified, he pointed out.

Dr. Kirit S Parikh, Member, Planning Commission who also spoke on the occasion said that India needs to rationalize its coal prices as world over their prices have fallen down.  He emphasized the need for placing a transparent coal pricing mechanism for which a regulator is being appointed for coal sector.

Source: ASSOCHAM

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