Inter-Ministerial Panel suggests new evaluation criteria for coal block allocations
The Inter-Ministerial Panel that was established to look into coal block allocations has suggested a 30-point pre-determined evaluation criterion for allowing coal blocks in future.
Of the 30 points, nine points have been assigned for a company's preparedness. This includes evaluating it the company has got approval for the project, water allocation, land acquisition etc.
The coal demand-supply gap in the state, in which the plant is situated, will be the next evaluation criterion in the list. Companies setting up power projects in states with higher coal shortage will be given priority in allocation of coal reserves.
A company's past record of development of coal blocks, their financial credibility as well as capability to mine coal will also be taken into account will allocating the coal blocks.
Meanwhile, the Coal Ministry has notified the Prime Minister's Office that it would soon publish notice inviting offers from the public sector companies for distribution of identified coal blocks.
In May, the Coal Ministry had identified a total of 54 coal mines for allocation to public and private companies. Of these, 16 have been put aside for public sector companies, and 16 for power sector. The remaining 22 will be allocated through auction route.
The 14-member inter-ministerial panel, which suggested the new mechanism for allocating coal mines, has representatives from ministries of power, steel, law & justice and Planning Commission, among others.