COAL & MINES

Goa given 100 days to take over coal block

The Union coal ministry has issued a stern warning to the Goa government saying that Goa could lose a coal block for the second time if it does not complete the formalities to take over the Dongri Tal II coal block at Singrauli in Madhya Pradesh.

Industries minister Vishwajit Rane, who met with the Union ministry officials, has sought a grace period of 100 days to arrange the funds required to pay the performance guarantee for the coal block that Goa Industrial Development Corporation (GIDC) plans to operate.

“The coal ministry has warned Goa to take possession of the coal block within 100 days,” Rane said. Rane had earlier announced that the state would sign the agreement for this block by October 30.

The corporation has already identified a committee to spearhead the process to formally utilise the coal block, which was allocated to the state through a bidding process.

TOI had reported on October 4, 2019, that the corporation intended to rope in validated consultants to help the state with the coal block utilisation and with the auction of the industrial land returned by the special economic zone promoters.

The Dongri Tal II coal block at Singrauli was allotted to Goa as part of the fifth tranche of allotment by the coal ministry. However, the cash-strapped corporation needs to pay Rs 196 crore to exploit the coal block, sources said.

Coal mines have been allotted to state governments for sale of coal under the Coal Mines (Special Provisions) Act, 2015.

Source
ET Energy World
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