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2012 Sept IMG Note
2012 Sept IMG Note
2012 Sept IMG Note
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 1 2 Pre-2004 Between and 2009 Total 17 67 84 Private Sector 22 77 99 UMPPs Total 39 156 195
2004
12 12
2. Private sector Blocks: Ninety-Nine (99) No of Blocks 1 2 3 Included in CAG Report Pre-2004 Blocks Underground Blocks - Not considered by CAG (post 2004) Total 57 22 20 Extractable Reserves (Million Tonnes) 6282 420 1120 Undue Benefit (Rs crores) 1,85,591 12,421 NIL
99
7,822
1,98,012
3. Break up of blocks between power (regulated sector) and non-power (free market sectors - cement, steel) sectors
Power
NonPower 17 54 71
UMPPs
Total
1 2
5 23 28
0 12 12
22 89 111
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 months or three and half years for the open cast mines having forest land. For almost all of these coal blocks, this time has elapsed.
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)
Sl. No. 1 2 3
Pending
Total no-progress blocks UPA regime (2004 onwards) NDA regime (1998-2004)
Page 2 of 12
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 get affected and investments in end use plants do not get stranded and investor sentiment is not affected. The other sectors always retain the option of participating in competitive bidding for coal blocks or importing coal to fulfill their requirements. e. Similar exercise could also be done for 20 underground blocks.
Note: All Data is sourced from Ministry of Coals website and CAG Report dated 11 May 2012.
Page 3 of 12
Annexure 1 Details of the blocks without Forest Clearance, Prospecting License or Land Acquisition pre-2004
Sl No Company Promoter State Block Name Date of Sector allotment Extractable Reserves (in million tonnes) 77 Undue benefit (Rs. Cr.) as per CAG methodology 2286
1 Monnet Ispat and Energy Ltd 2 GVK Power (Govindwal Sahib ltd) 3 Fieldmining and Ispat Ltd
Sandeep Jajodia GV Krishna Reddy Anil Taneja & Kavita Taneja, now sold to Wardha power (KSK group), Hyderabad Anil Taneja & Kavita Taneja, now sold to Wardha power (KSK group), Hyderabad Naveen Jindal
Odisha
Utkal -B2
Jharkhand
Tokisud North
7-Jan-02 Power
67
1984
Maharashtra Chinora
15
431
13
388
5 Jindal Steel and Power Ltd 6 Gondwana Ispat Ltd 7 Bhushan Ltd Total
Odisha
Utkal B 1
166
4917
Maharashtra Majra
23
690
Odisha
Jamkhani
58 420
1725 12,421
Page 4 of 12
Annexure 2 Details of the blocks without Forest Clearance, Prospecting License or Land Acquisition after-2004
Sl No Company Promoter State Block Name Date of Sector allotment Extractable Reserves (in million tonnes) 56.21 Undue benefit (Rs. Cr.) as per CAG methodology 1660
1 Abhijeet Infrastructur e Ltd 2 Abhijeet Infrastructur e Ltd 3 Abhijeet Infrastructur e Ltd 4 Usha Martin Ltd 5 Neelachal Iron & Power Generation & Bajrang Ispat 6 Bhushan Steel & Strips Ltd & Others 7 Eleectrostee l Castings & Others 8 Essar Power ltd. & Hindalco
Jharkhand
Brinda
5/26/2005
Sponge Iron
Jharkhand
Sasai
5/26/2005
Sponge Iron
Jharkhand
Meral
5/26/2005
Sponge Iron
Jharkhand Jharkhand
8/24/2005 1/13/2006
9.05 40.85
267 1207
Orissa
New Patrapara
1/13/2006
Sponge Iron
316.09
9338
Jharkhand
1/13/2006
340.05
10045
Madhya Pradesh
4/12/2006
121.96
3603
Page 5 of 12
Sl No
Company
Promoter
State
Block Name
9 Rungta Mines Ltd. 10 Rungta Mines Ltd. And Others 11 Essar Power Generation Ltd 12 JSPL 13 Hindalco & Tata Power Ltd 14 DB Power Ltd
N L Rungta N L Rungta
Jharkhand Orissa
4/25/2006 4/25/2006
Ruia family
Jharkhand
2/20/2007
Power
71.14
2102
Naveen Jindal
Jharkhand
Jitpur Tubed
2/20/2007 8/1/2007
Power Power
65.54 130
1936 3840
Anil Agarwal & Jharkhand Ratan Tata Dainik Bhaskar Chattisgarh (Ramesh Chandra Agarwal) Maharashtra
Durgapur II/Sariya
11/6/2007
Power
66.92
1977
16 CESC Ltd & Sanjiv Goenka, Jharkhand JAS Manoj Infrastructur Jayaswal e 17 Monnet Sandeep ispat & Jajodia Energy Ltd, Tata power Orissa
Power
140
4136
Power
160.6
4744
Mandakin iA
1/9/2008
Power
287.89
8505
Page 6 of 12
Sl No
Company
Promoter
State
Block Name
18
19
20
21
22
23
Ltd and Jindal Photo Ltd JSPL Ispat & Gagan Sponge iron Ltd. SKS Ispat & power Ltd & Prakash Industries Rungta Mines Ltd. & Sunflag Iron & Steel Ltd. JSW Steel Ltd., Bhushan Steel Mukund Ltd, Vini Iron & Steel Udyog Ltd Strategic Energy And Tech System Ltd. (Tata-Sasol JV)
Naveen Jindal
Jharkhand
Power
299.3
8842
Power
87.6
2588
Choritand Taliya
5/14/2008
Pig iron
70.81
2092
Sajjan Jindal
Jharkhand
Rohne
5-Jun-08
Steel
191
5642
Jharkhand
Steel
15.61
461
CTL
1,095.00
32347
Page 7 of 12
Sl No
Company
Promoter
State
Block Name
24 Tata Steel Ltd. & Adhunik Thermal Energy Ltd. 25 Himachal EMTA/ JSW Steel Ltd 26 Jayaswal Neco Ltd. 27 Tata Steel Ltd. 28 Tata Steel Ltd 29 Corporate Ispat & Alloys Ltd 30 Bhushan Power & Steel Ltd 31 JSPL & Nalwa Sponge Iron Ltd. 32 Jayaswal Neco Ltd.
Ratan Tata
Jharkhand
Ganeshp ur
28-May-09
Power
Sajjan Jindal
West Bengal Gouganrd ih ABC Jharkhand Jharkhand Moitra Kotre Basantpu r Panchmo Chitarpur
10-Jul-09
Power
61.54
1818
13-May-05 11-Aug-05
Steel Steel
29.91 93.05
884 2749
Jharkhand Jharkhand
11-Aug-05 2-Sep-05
61.28 58.66
1810 1733
13-Jan-06
Sponge Iron
161.2
4762
13-Jan-06
Sponge Iron
66.37
1961
Naveen Jindal
Chattisgarh
13-Jan-06
Steel
11.75
347
Page 8 of 12
Sl No
Company
Promoter
State
Block Name
33 Ultratech Others
Chattisgarh
34 Madanpur South (JVC of Hindustan Zinc Ltd) 35 Chattisgarh Captive Coal Mining Ltd (JVC of Ispat Godavari & Others) 36 Chattisgarh Captive Coal Ltd (JVC of Ispat Godavari & Others) 37 Tata Sponge & Otehrs 38 BALCO
Chattisgarh
115.74
3419
BL Agarwal
Chattisgarh
Nakia I
13-Jan-06
Sponge Iron
98.32
2904
BL Agarwal
Chattisgarh
Nakia II
13-Jan-06
Sponge Iron
Ratan Tata
Orissa
Radhikap ur East
7-Feb-06
Sponge Iron
105.24
3109
Anil Agarwal
Chattisgarh
6-Nov-07
Power
70.12
2071
6-Dec-07
Sponge Iron
1.86
55
Page 9 of 12
Sl No
Company
Promoter
State
Block Name
Harsh V Lodha
Bikram
12-Aug-08
Cement
Bhaskarp ara
21-Nov-08
Sponge Iron
18.67
552
42 Domco Unavailable Smokeless Fuel Pvt Ltd 43 Essar Power Ruia family Ltd. 44 Bhushan Power & Steel Ltd 45 AES Chattisgarh Energy power Pvt Ltd 46 Arcelor Mittal india Ltd & GVK power (G.Sahib)
Jharkhand
8-Jul-05
Pig iron
10.02
296
Jharkhand
6-Nov-07
Power
40.7
1202
6-Nov-07
Power
74
2186
6-Nov-07
Power
55.5
1640
Seregarh a
9-Jan-08
Power
55.5
1640
Page 10 of 12
Sl No
Company
Promoter
State
Block Name
47 Sterlite Energy, GMR Energy, Arcelor Mittal india Ltd. Lanco Group, Navabharta power (IPP), Reliance Energy 48 Sterlite Energy, GMR Energy, Arcelor Mittal india Ltd. Lanco Group, Navabharta power (IPP), Reliance Energy 49 JLD Yavatmal Energy, RKM Powergen, Vandana Vidyut, Visa
Power
Rampia
17-Jan-08
Power
Fatehpur
23-Jan-08
Power
185
5465
Page 11 of 12
Sl No
Company
Promoter
State
Block Name
50 Bihar Umesh Modi Sponge Iron Co. Ltd 51 Jindal Steel Naveen Jindal Power
Jharkhand
5-Aug-08
Power
8.83
261
Orissa
27-Feb-09
CTL
555
16395
52 Rungta NL Rungta Mines Ltd/ Kohinoor Steel Pvt Ltd 53 IST Steel & N. power, Sekhsaria Gujarat Ambuja Cements, Lafarge india Ltd Total
Jharkhand
28-May-09
29.91
884
S. Chattisgarh
17-Jun-09
Steel/ Cement
48.84
1443
6,263
185,010
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