Govt invites applications for allotment of 8 coal mines

New Delhi: Moving ahead with its decision to open up the coal sector, the government has invited applications from public sector entities for allocation of eight mines that have been identified for commercial mining.

These eight mines would be allotted to host states. Among these, two blocks are in Madhya Pradesh, while one each is in Odisha, Maharashtra, West Bengal, Jharkhand, Telangana and Chhattisgarh, an official said.

The government came out with the notice inviting applications for the mines on April 21, the official said adding May 31 will be the last date for submission of applications and “June 1 will be the application opening date.”

The Nominated Authority will make recommendations to the Centre for selection of allottees on June 8 and on June 10 the results would be published and intimation to allottees would be made, the official said.

July 15 would be the last date for furnishing of performance security and payment of fixed amount and first instalment of Upfront Amount while the allotment order would be issued on July 19.

The eight coal blocks to be allotted are Baitarni West in Odisha, Dahegaon/Makard hokra IV in Maharashtra, Dongeri Tal II and Marki Barka in Madhya Pradesh, Gourangdih ABC in West Bengal, Patal East in Jharkhand, Penagaddppa in Telangana and Shankarpur Bhatgaon II Extn in Chhattisgarh.

The decision to open up coal sector is in line with the government’s target of doubling coal production to 1.5 billion tonnes by 2020. For Coal India, the target is 1 billion tonne.

Coal and Power Minister Piyush Goyal had earlier said the government will ensure that coal demand of states, PSUs and small players is fully met before opening the sector for commercial mining by private companies.