2012 Sept IMG Note

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Cancellation of coal blocks allotted since 1993 (including NDA regime)

where no development has taken place will defuse current crisis

Out of 99 Blocks allocated to Private players since 1993, 60 coal blocks

with 6.7 billion tonnes (ER) valued at nearly Rs 2 lakh crores can be

cancelled due to lack of progress as ascertained by Ministry of Coal in the

meeting of January 2012

Background

1. Total Coal Blocks Awarded: 195 Blocks (Not including 23 de-allocated Blocks)

Public Sector Private Sector UMPPs Total

1 Pre-2004 17 22 392 Between 2004

and 200967 77 12 156

Total 84 99 12 195

2. Private sector Blocks: Ninety-Nine (99)

No ofBlocks

ExtractableReserves

(Million Tonnes)

Undue Benefit(Rs crores)

1 Included in CAG Report 57 6282 1 85 591

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1 Included in CAG Report 57 6282 1 85 591

4. There are three major milestones in the lifecycle of a coal block development

Prospecting License (for unexplored blocks)

Forest Clearance - takes 48 to 60 months as per Ministry of Coal's estimates

Land Acquisition

5. Under the coal block allotment rules (and as specified in each of the coal block

allotment letters), the scheduled timelines for development of mines is only 42 monthsor three and half years for the open cast mines having forest land. For almost all of

these coal blocks, this time has elapsed.

Status of coal blocks

ascertained by Ministry of Coal

6. In January 2012, a review meeting on coal block status was taken by Additional

Secretary (Coal) Smt Zohra Chatterji. (Minutes of meeting enclosed). Two more

meetings of Inter-Ministerial group have been held since then (last in August 2012)

7. Other Ministries were also represented in this meeting. The following was noted about

the status of coal blocks (detailed status of pre-2004 blocks in Annexure 1 & post 2004

in Annexure 2)

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Suggested way forward

8. It is suggested that Government takes firm action based on lack of progress as

ascertained by the Ministry of Coals review meeting in January 2012, which would be

viewed in routine course.

9. Steps to be followed

a. Government reviews the responses given by Coal Block Allottees to Show

Cause Notices and Advisories issued to them post January 2012 meeting.

b. The Inter-Ministerial Group meets once again and recommends cancellation

of all coal blocks that are not likely to produce coal by March 2013 due to

lack of progress.

c. 60 blocks having almost all the reserves cited by CAG (6.7 billion tonnes)

can be cancelled and handed over to Coal India for development immediately

as the present allocatees have not concluded Land Acquisition.

d. To compensate the regulated sectors (power plants) which have been set up on

the basis of these blocks, linkage from Coal India may be granted and Fuel Supply

Agreements (FSA) signed as per policy This will ensure that the developers do not

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Annexure 1 Details of the blocks without Forest Clearance, Prospecting License or Land Acquisition pre-2004

SlNo

Company Promoter State BlockName

Date ofallotment

Sector ExtractableReserves (inmilliontonnes)

Undue benefit(Rs. Cr.) as perCAGmethodology

1 MonnetIspat andEnergy Ltd

SandeepJajodia

Odisha Utkal -B2 16-Aug-99 Sponge Iron 77 2286

2 GVK Power(GovindwalSahib ltd)

GV KrishnaReddy

Jharkhand TokisudNorth

7-Jan-02 Power 67 1984

3 Fieldmining

and IspatLtd

Anil Taneja &

Kavita Taneja,now sold toWardha power(KSK group),Hyderabad

Maharashtra Chinora 8-Oct-03 Sponge Iron 15 431

4 Fieldminingand IspatLtd

Anil Taneja &Kavita Taneja,now sold toWardha power(KSK group),Hyderabad

Maharashtra Warora(West),SouthernPart

8-Oct-03 Sponge Iron 13 388

5 Jindal Steeland PowerLtd

Naveen Jindal Odisha Utkal B 1 29-Sep-03 Sponge Iron 166 4917

6 GondwanaIspat Ltd

merged intoBS Ispat ltd(Govind Daga)

Maharashtra Majra 29-Oct-03 Sponge Iron 23 690

7 Bhushan Ltd Brij BhushanSinghal

Odisha Jamkhani 12-Nov-03 Sponge Iron 58 1725

Total 420 12,421

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Annexure 2 Details of the blocks without Forest Clearance, Prospecting License or Land Acquisition after-2004

SlNo


Date ofallotment



1 AbhijeetInfrastructure Ltd

ManojJayaswal

Jharkhand Brinda 5/26/2005 Sponge Iron 56.21 1660

2 AbhijeetInfrastructure Ltd

ManojJayaswal

Jharkhand Sasai 5/26/2005 Sponge Iron 0 0

3 AbhijeetInfrastructur

e Ltd

ManojJayaswal

Jharkhand Meral 5/26/2005 Sponge Iron 0 0

4 Usha MartinLtd

B K Jhawar Jharkhand Lohari 8/24/2005 Steel 9.05 267

5 NeelachalIron &PowerGeneration& BajrangIspat

Aditya Jajodia Jharkhand Dumri(Explored)

1/13/2006 Sponge Iron 40.85 1207

6 BhushanSteel &

Strips Ltd &Others

Brij BhushanSinghal

Orissa NewPatrapara

1/13/2006 Sponge Iron 316.09 9338

7 Eleectrosteel Castings &Others

PradeepKumar Khaitan

Jharkhand NorthDhadu

1/13/2006 SpongeIron, Steel

340.05 10045

8 Essar Powerltd. &Hindalco

Ruia family MadhyaPradesh

Mahan 4/12/2006 Power 121.96 3603

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SlNo


Date ofallotment



9 RungtaMines Ltd.

N L Rungta Jharkhand Bundu 4/25/2006 Sponge Iron 32.17 950

10 RungtaMines Ltd.And Others

N L Rungta Orissa Radhikapur West

4/25/2006 Sponge Iron 210.56 6220

11 Essar PowerGenerationLtd

Ruia family Jharkhand Chakla 2/20/2007 Power 71.14 2102

12 JSPL Naveen Jindal Jharkhand Jitpur 2/20/2007 Power 65.54 1936

13 Hindalco &Tata PowerLtd

Anil Agarwal &Ratan Tata

Jharkhand Tubed 8/1/2007 Power 130 3840

14 DB PowerLtd

Dainik Bhaskar(RameshChandraAgarwal)

Chattisgarh DurgapurII/Sariya

11/6/2007 Power 66.92 1977

15 Adani PowerLtd.

Gautam Adani Maharashtra LoharaWest

Extension

11/6/2007 Power 140 4136

16 CESC Ltd &JASInfrastructure

Sanjiv Goenka,ManojJayaswal

Jharkhand Mahuagarhi

1/9/2008 Power 160.6 4744

17 Monnetispat &Energy Ltd,Tata power

SandeepJajodia

Orissa Mandakini A

1/9/2008 Power 287.89 8505

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SlNo


Date ofallotment



Ltd andJindal PhotoLtd

18 JSPL Ispat& GaganSponge ironLtd.

Naveen Jindal Jharkhand AmarkondaMurgadangal

1/17/2008 Power 299.3 8842

19 SKS Ispat &power Ltd &Prakash

Industries

Anil Gupta,Sudhir KantSahai

Chattisgarh Fatehpur 2/6/2008 Power 87.6 2588

20 RungtaMines Ltd. &Sunflag Iron& Steel Ltd.

N L Rungta Jharkhand ChoritandTaliya

5/14/2008 Pig iron 70.81 2092

21 JSW SteelLtd.,BhushanSteel

Sajjan Jindal Jharkhand Rohne 5-Jun-08 Steel 191 5642

22 Mukund Ltd,Vini Iron &Steel UdyogLtd

Jharkhand RajharaNorth(Central &Eastern)

20-Nov-08 Steel 15.61 461

23 StrategicEnergy AndTechSystem Ltd.(Tata-SasolJV)

Ratan Tata &Sasol JV

Orissa North ofAkrapal

27-Feb-09 CTL 1,095.00 32347

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SlNo


Date ofallotment



24 Tata SteelLtd. &AdhunikThermalEnergy Ltd.

Ratan Tata Jharkhand Ganeshpur

28-May-09 Power 100.01 2954

25 HimachalEMTA/ JSWSteel Ltd

Sajjan Jindal West Bengal Gouganrdih ABC

10-Jul-09 Power 61.54 1818

26 JayaswalNeco Ltd.

ManojJayaswal

Jharkhand Moitra 13-May-05 Steel 29.91 884

27 Tata SteelLtd. Ratan Tata Jharkhand KotreBasantpur

11-Aug-05 Steel 93.05 2749

28 Tata SteelLtd

Ratan Tata Jharkhand Panchmo 11-Aug-05 Steel 61.28 1810

29 CorporateIspat &Alloys Ltd

ManojJayaswal

Jharkhand Chitarpur 2-Sep-05 Sponge Iron 58.66 1733

30 BhushanPower &Steel Ltd

Brij BhushanSinghal

Orissa Bijahan(Unexplored block)

13-Jan-06 Sponge Iron 161.2 4762

31 JSPL &NalwaSponge IronLtd.

Naveen Jindal Chattisgarh GarePalmaIV/6

13-Jan-06 Sponge Iron 66.37 1961

32 JayaswalNeco Ltd.

Naveen Jindal Chattisgarh GarePalmaIV/8

13-Jan-06 Steel 11.75 347

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SlNo


Date ofallotment



33 Ultratech &Others

Kumarmangalam Birla

Chattisgarh MadanpurNorth

13-Jan-06 Power,Sponge Iron

94.96 2805

34 MadanpurSouth (JVCof HindustanZinc Ltd)

Anil Agarwal Chattisgarh MadanpurSouth

13-Jan-06 Power,Sponge Iron

115.74 3419

35 ChattisgarhCaptiveCoal Mining

Ltd (JVC ofIspatGodavari &Others)

BL Agarwal Chattisgarh Nakia I 13-Jan-06 Sponge Iron 98.32 2904

36 ChattisgarhCaptiveCoal Ltd(JVC ofIspatGodavari &Others)

BL Agarwal Chattisgarh Nakia II 13-Jan-06 Sponge Iron 0 0

37 TataSponge &Otehrs

Ratan Tata Orissa Radhikapur East

7-Feb-06 Sponge Iron 105.24 3109

38 BALCO Anil Agarwal Chattisgarh DurgapurII/Taraimar

6-Nov-07 Power 70.12 2071

39 Sova Ispat &Jai BalajuSponge Ltd

Aditya Jajodia West Bengal Ardhagram

6-Dec-07 Sponge Iron 1.86 55

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SlNo


Date ofallotment



40 BirlaCorporationLtd

Harsh V Lodha MadhyaPradesh

Bikram 12-Aug-08 Cement 3.76 111

41 ElectrothermIndia Ltd.,GrasimIndustries

MukeshBhandari,Kumarmangalam Birla

Chattisgarh Bhaskarpara

21-Nov-08 Sponge Iron 18.67 552

42 DomcoSmokelessFuel Pvt Ltd

Unavailable Jharkhand LalgarhNorth

8-Jul-05 Pig iron 10.02 296

43 Essar PowerLtd.

Ruia family Jharkhand AshokKarkataCentral

6-Nov-07 Power 40.7 1202

44 BhushanPower &Steel Ltd

Brij BhushanSinghal

Jharkhand PatalEast

6-Nov-07 Power 74 2186

45 AESChattisgarhEnergypower Pvt

Ltd

AES group Chattisgarh Sayang 6-Nov-07 Power 55.5 1640

46 ArcelorMittal indiaLtd & GVKpower(G.Sahib)

Lakshmi Mittal& GVK Reddy

Jharkhand Seregarha

9-Jan-08 Power 55.5 1640

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SlNo


Date ofallotment



47 SterliteEnergy,GMREnergy,ArcelorMittal indiaLtd. LancoGroup,Navabhartapower (IPP),RelianceEnergy

Anil Agarwaland others

Orissa Dip SideofRampia

17-Jan-08 Power 238.74 7053

48 SterliteEnergy,GMREnergy,ArcelorMittal indiaLtd. LancoGroup,Navabharta

power (IPP),RelianceEnergy

Anil Agarwaland others

Orissa Rampia 17-Jan-08 Power 0 0

49 JLDYavatmalEnergy,RKMPowergen,VandanaVidyut, Visa

Athena energyventures (VijayKumar) andothers

Chattisgarh Fatehpur 23-Jan-08 Power 185 5465

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SlNo


Date ofallotment



Power,GreenInfrastructure

50 BiharSponge IronCo. Ltd

Umesh Modi Jharkhand Macherkunda

5-Aug-08 Power 8.83 261

51 Jindal Steel

Power

Naveen Jindal Orissa Ramchan

diPromotional Block

27-Feb-09 CTL 555 16395

52 RungtaMines Ltd/KohinoorSteel Pvt Ltd

NL Rungta Jharkhand Mednirai 28-May-09 Power,Sponge Iron

29.91 884

53 IST Steel &power,GujaratAmbujaCements,Lafargeindia Ltd

N. S.Sekhsaria

Chattisgarh DahegaonMakardhokra

17-Jun-09 Steel/Cement

48.84 1443

Total 6,263 185,010

Documents

2012 Sept IMG Note