The Environment Ministry has turned down the Coal Ministry's request for grant of 'in-principle' clearances to mines identified for auction, raising doubts over proposed competitive bidding for captive blocks. 'The Environment Ministry has said that in-principle environment and forest clearances to mines to be auctioned cannot be accorded as it is legally not enforceable,' a source in the Coal Ministry said.
The Coal Ministry had earlier expressed the hope that differences with various ministries on the proposed bidding norms for auctioning of captive coal blocks would be resolved.
The unresolved issues include getting 'in-principle' environment clearance to the blocks on offer, arriving at a benchmark floor price and offering discounted prices to sectors like power, Coal Secretary S K Srivastava had said.
The Coal Secretary had said some ministries are in favour of auction after getting certain approvals, like green clearances, for the mines to be sold. However, it might not be feasible due to procedural reasons, he had said. 'We are in touch with MoEF on whether there can be a thing like conceptually providing in-principle approval, which I feel may not be possible considering the processes which are to be involved. We are to still arrive at a final view but few of the ministries have said that blocks have to be given with clearances,' he had said. This 'requires lot of deliberations' he added.
While environment clearance is given by MoEF, forest clearance is provided by respective state governments.
Amid alleged irregularities in allocating coal blocks to various firms for their captive consumption in the past, the government had decided to allocate such blocks through auction route only.
Later it identified 54 such blocks to be alloted both through auction and government dispensation route and asked Crisil to provide a report on the methodology to determine the reserve price for bidding of the blocks. Crisil, which submitted its report in October, had reportedly suggested preparing a robust feasibility report of all the 54 blocks and using discounted cash flow (DCF) method for valuation of the blocks. The government auditor CAG in its report had said financial gains of Rs 1.86 lakh crore could have accrued to the government had it auctioned the 57 coal blocks that were allocated to private firms between 2004 and 2009.
GIVE ADANI’S MUNDRA PLANT 30% COAL LINKAGE: POWER MINISTRY
Ahead of the inter-ministerial panel meeting on coal linkages this week, the Power Ministry has proposed restoration of 30 per cent supply for Adani Power’s 100 per cent import-based plant at Mundra, Gujarat. ‘Power ministry has again recommended restoration of 30 power cent coal linkage granted to the 100 per cent import-based power plant ,' a coal ministry document said.
The government had also received a representation from Adani Power requesting for restoration of an earlier decision of a panel to give coal linkage for the power plant at Mundra, the document said.
'On of the reasons for low PLF (plant load factor) at Mundra plant is due to heavy slagging and boiler temperature excursions being faced due to usages of 100 per cent imported coal. The use of Indian coal in blending to the extent of 30 per cent would meet various parameters such as heat generation and absorption in the furnace and reduction in super heater and reheater spray within design range. The specific range of their boilers with reference to GCV, ash contents etc would also thus be met,' the document said.
The Standing Linkage Committee in 2010 had granted 30 per cent linkage. However, it was reviewed the next year wherein Coal India informed the panel that six million tonnes of coal for such power stations had not been included in the estimates of Planning Commission. Therefore, CIL may not be able to meet the commitment.The Power Ministry had also said that earlier decision for grant of coal linkages may be implemented keeping in mind the uncertainty in supply of imported coal.
The matter was again discussed last year and the panel felt the Power Ministry needed to clarify the change in situation, with appropriate technical details which justify any change at the 2011 meeting.
‘The Ministry of Power has informed that Adani Power has since got conducted a depth study on this issue with due support and inputs form some technical experts. A letter of Adani along with the technical reports has been forwarded,' the document said.
The Coal Ministry had earlier expressed the hope that differences with various ministries on the proposed bidding norms for auctioning of captive coal blocks would be resolved.
The unresolved issues include getting 'in-principle' environment clearance to the blocks on offer, arriving at a benchmark floor price and offering discounted prices to sectors like power, Coal Secretary S K Srivastava had said.
The Coal Secretary had said some ministries are in favour of auction after getting certain approvals, like green clearances, for the mines to be sold. However, it might not be feasible due to procedural reasons, he had said. 'We are in touch with MoEF on whether there can be a thing like conceptually providing in-principle approval, which I feel may not be possible considering the processes which are to be involved. We are to still arrive at a final view but few of the ministries have said that blocks have to be given with clearances,' he had said. This 'requires lot of deliberations' he added.
While environment clearance is given by MoEF, forest clearance is provided by respective state governments.
Amid alleged irregularities in allocating coal blocks to various firms for their captive consumption in the past, the government had decided to allocate such blocks through auction route only.
Later it identified 54 such blocks to be alloted both through auction and government dispensation route and asked Crisil to provide a report on the methodology to determine the reserve price for bidding of the blocks. Crisil, which submitted its report in October, had reportedly suggested preparing a robust feasibility report of all the 54 blocks and using discounted cash flow (DCF) method for valuation of the blocks. The government auditor CAG in its report had said financial gains of Rs 1.86 lakh crore could have accrued to the government had it auctioned the 57 coal blocks that were allocated to private firms between 2004 and 2009.
GIVE ADANI’S MUNDRA PLANT 30% COAL LINKAGE: POWER MINISTRY
Ahead of the inter-ministerial panel meeting on coal linkages this week, the Power Ministry has proposed restoration of 30 per cent supply for Adani Power’s 100 per cent import-based plant at Mundra, Gujarat. ‘Power ministry has again recommended restoration of 30 power cent coal linkage granted to the 100 per cent import-based power plant ,' a coal ministry document said.
The government had also received a representation from Adani Power requesting for restoration of an earlier decision of a panel to give coal linkage for the power plant at Mundra, the document said.
'On of the reasons for low PLF (plant load factor) at Mundra plant is due to heavy slagging and boiler temperature excursions being faced due to usages of 100 per cent imported coal. The use of Indian coal in blending to the extent of 30 per cent would meet various parameters such as heat generation and absorption in the furnace and reduction in super heater and reheater spray within design range. The specific range of their boilers with reference to GCV, ash contents etc would also thus be met,' the document said.
The Standing Linkage Committee in 2010 had granted 30 per cent linkage. However, it was reviewed the next year wherein Coal India informed the panel that six million tonnes of coal for such power stations had not been included in the estimates of Planning Commission. Therefore, CIL may not be able to meet the commitment.The Power Ministry had also said that earlier decision for grant of coal linkages may be implemented keeping in mind the uncertainty in supply of imported coal.
The matter was again discussed last year and the panel felt the Power Ministry needed to clarify the change in situation, with appropriate technical details which justify any change at the 2011 meeting.
‘The Ministry of Power has informed that Adani Power has since got conducted a depth study on this issue with due support and inputs form some technical experts. A letter of Adani along with the technical reports has been forwarded,' the document said.