Centre Rules Out Reallocating Idle Coal Blocks to SCCL: Kishan Reddy

Quick Summary:

• Union minister G. Kishan Reddy stated that coal blocks are allocated through a transparent auction process by the Ministry of Coal.
• He responded to Warangal MP Kadiyam Kavya’s inquiry about coal block allocations for Singareni Collieries Company Limited (SCCL).
• Telangana Chief Minister requested allocation of specific coal blocks (Koyagudem Block III and Sathupalli Block III) under sections 11A/17A(2) of the Mines and Minerals Progress Regulation Act,1957.
• G.Kishan Reddy clarified that no such proposal for direct allocation is under consideration due to the auction policy.
• SCCL conveyed its willingness to offer higher revenue shares than previous bidders but faces difficulties as some previously auctioned blocks remain idle due to private allottees’ inaction.
• MP Kavya emphasized SCCL’s need for sufficient reserves to sustain production and meet Telangana’s power demands.

[Image: G. Kishan Reddy | Photo Credit: SIDDHANT THAKUR]

Indian Opinion Analysis:

The persistence on fair and transparent auctions represents India’s move towards combating inefficiencies tied to discretionary allocations seen in earlier regimes. While SCCL’s operational importance in meeting Telangana’s rising energy needs is notable, competition via auctions ensures better regulatory oversight and revenue generation.

Other challenges highlighted in this discussion include delays caused by inactive private allottees, which may compromise strategic resource utilization for public benefit. balancing transparency with prioritization of State-owned companies like SCCL requires systematic coordination between state governments and central ministries to minimize resource wastage while ensuring optimal use aligned with long-term power planning goals.

Read more at The Hindu.