PSUs need to furnish details of coal blocks before bidding

PSUs need to furnish details of coal blocks before bidding New Delhi: The government has said that PSUs seeking coal mines in the upcoming auction process will have to furnish details on status and development of mines already alloted them.

"The applications (submitted by the government companies) should also contain details of the steps taken for development and the status of area containing coal already allotted to the company and also the details of the end-use plants," the Coal Ministry said in an official memorandum.

The details of the end-use plants would include location, capacity and status of financial closure, the memorandum said.

The applications submitted by the government companies for coal blocks shall contain detailed jurisdiction with reference to the requirements of the company, the existing linkages and the area containing coal already allocated, it said.

Earlier this year, the government had identified 54 blocks to be allocated to various sectors, including power, steel and cement.

Of 54 coal mines, 12 have been earmarked for government firms, 16 for the power sector, 12 for the steel sector, seven for the cement sector, five for sponge iron and two for surface gasification.

Coming down heavily on the companies for not developing the captive mines allocated to them, the Inter-Ministerial Group (IMG) this year recommended deallocation of 11 blocks, deduction of BG (Bank Guarantee) in five cases, imposition of BG in 11 cases and no action in 6 cases with regard to public sector firms.

PTI