Coal reserves to be de-blocked for power projects

ew Delhi, Feb 28: Presenting the Budget proposals for the year 2006-07 Finance Minister P Chidambaram today (Feb 28, 2006) said after reserving the blocks for Coal India Limited and its subsidiaries for the period up to 2012, it has been decided to de-block coal reserves of 20 billion tonnes for power projects.

He informed that a comprehensive review of the Coal Policy is underway.

This year, 45 coal blocks have been allotted for captive consumption to the power, cement and steel sectors and to the state governments.

Mr Chidambaram further announced that the definition of captive consumption will also be amended to allow coal mining by producers with firm supply contracts with steel, cement and power companies.

The capacity of Central Mines Planning and development Institute Limited to drill in order to prove reserves which is now only 2000,000 metres per annum, would be expanded substantially, he said.

UNI