Prime Minister of India - Dr. Manmohan Singh

De-reservation of coal blocks to add 68,000 MW to power generation

The government has allocated coal blocks for the power sector that is expected to add 68000 MW to power generation capacity. Twelve coal blocks, with geological reserves of about 6.4 billion tonnes, have been allocated to 18 Central/State Government Companies. This is expected to sustain power generation of approximately 30,000 MW. And 31 private companies have been allocated 15 coal blocks, with geological reserves of 3.6 billion tonnes to support additional generation of 16,000 MW. More than 900 applications were received for the allocation of these coal blocks.

The allocation follows the decision of the Energy Coordination Committee, under the Chairmanship of the Prime Minister, to de-reserve such coal blocks that could not be taken up by Coal India Ltd and its subsidiaries for mining in the near future. 81 coal blocks with geological reserves of about 20 billion tonnes were identified by the Ministry of Coal for allocation to companies, both government and private, for permissible end uses. Out of these, 41 coal blocks, with geological reserves of about 15.7 billion tonnes, were earmarked for the power sector.

The Government has also decided to facilitate the development of Ultra Mega Power Projects of about 4,000 MW capacity each under tariff based competitive bidding route using super critical technology. Four coal blocks, with geological reserves of 1857 million tonnes, have been allocated to two Ultra Mega Power Projects being set up in Orissa and Jharkhand. These will have a generation capacity of 8,000 MW. In addition two coal blocks have been earmarked for Ultra Mega Power Project of 2,000 MW capacity each in Chhattisgarh.

Eight coal blocks, with geological reserves of more than 2650 million tonnes, are also to be allocated through competitive bidding route and will further enhance power generation capacity by 10,000 MW. The allocation of these coal blocks by the Government will support a power generation capacity of approximately 68,000 MW which will enhance energy security in the country.