Fate of 9 Coal Blocks Hangs in Balance after Odisha writes to Union Coal Ministry to delay Commercial Bidding for 3 Months

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By Our Correspondent

BHUBANESWAR/ANGUL: The fate of as many as 9 Coal blocks of the 38 across India put for commercial bidding , on Tuesday faced yet another rough weather, with after Jharkhand, Odisha has written to Union Coal Ministry seeking to delay the auction for another 3 months due to COVID-19.In the letter, Odisha Steel and Mines Minister Prafulla Mallik requested Union Coal, Mines and Parliamentary Affairs Minister Pralhad Joshi to defer to the bidding for 3 months.

The Odisha Steel and Mines Minister Mallick in his letter to Union Minister Joshi, argued that in view of the COVID-19 crisis,  minerals trade and the price of coal had come down significantly this year as compared to last year. “If the Coal Block auction is held in this scenario, the Government might not be able to get the better price of the natural mineral resource. The lease period of coal blocks is 30 years and a poor response to the auction will affect the State’s coal revenue,” the Odisha Minister said. While the last date for submission of the bid is September 29, the e-auction is scheduled to be held from October 19 to November 9, 2020.

The 9 mines blocks including Chendipada I, Chendipada II, Machhakata, Mahanadi, Radhikapur (East), Radhikapur (West), Brahmanbil & Kardabahal, Kuraloi (A) North, and Phuljhari (East & West) were put for auction in Odisha. Most of these Blocks belongs Angul-Talcher coal Belt, close to Satkosia and Similipal Tiger Reserves.The Naveen Patnaik led Government in Odisha, was expecting to get near about Rs 10,648 crore from 9 Coal Blocks of the total 38  put for auction for commercial coal mining. Of the 9 blocks. fierce bidding for Odisha’s Chendipada (40 MTPA) and Macchakatta (30 MTPA) blocks is expected along with Chhattisgarh’s Gare Pelma IV/1 (6 MTPA) coal mine, sources said.

The present auction of 38 coal blocks will destroy lakhs of acres of forest and agricultural land in Odisha, Chhatisgarh, Jharkhand, Madhya Pradesh and Maharastra. In Angul and Jharsuguda districts 33,000 acres of forest and agricultural land will be diverted and the mining activities will pollute and create water scarcity in river Brahmani which has been already vulnerable to industrial and mining activities. Private players like Rungta Mines Limited, Jindal Steel and Power Ltd, JSW Steel-Energy, Essel Mining and Industries Ltd, Hindalco, Tatas, Sesa Goa, Vedanta Industries Ltd, Adani Group, Thriveni Earth Movers Pvt Ltd and global players like Rio Tinto, BHP Billiton, PesBody, Glencore and Vale are among those eyeing on Odisha’s Coal blocks.

Following revisions have been made by the Coal Ministry in the list of coal mines offered in the process of opening up of coal sector and introduction of coal mining:Addition of Dolesara, Jarekela and Jharpalam-Tangarghat Coal Mines to the 1st Tranche of Auction under the MMDR Act, 1957. Withdrawal of Morga South Coal Mine from the 1st Tranche of Auction under the MMDR Act, 1957. Withdrawal of Fatehpur East,Madanpur (North), Morga-II, and SayangCoal Mines from the 11th Tranche of Auction under the CM(SP) Act, 2015. Therefore, 38 coal mines are offered for auction for commercial mining under 11th Tranche of Auction under CM(SP) Act, 2015 and 1st Tranche of Auction under MMDR Act, 1957.Ministry of Coal launched the auction process for 38 coal mines under 11th Tranche of Auction under CM(SP) Act, 2015 and 1st Tranche of Auction under MMDR Act, 1957.

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