New Delhi | April 24, 2017: The government is planning to put under the hammer coal blocks for private coal-to-gas, liquid and polychemical projects this financial year.

The coal ministry's move is fuelled by the necessity to explore alternative uses of coal mines as the last round of coal block auction for mining over a year ago got a tepid response.

"My priority is very clear... coal-to-gas, coal-to-liquid, coal-to-polychemical (CTL). That is something which I want should move... I think very soon, in about two months, we should be coming out with some blocks to be offered to the private sector for these projects," coal secretary Susheel Kumar told PTI.

The development is significant as domestic coal gas can help to lower the country's import bill by $10 billion in five years and cut carbon emission.

"So, Coal India will attempt all this from whatever coal mines they have. Second, fresh coal blocks would be auctioned to the private sector through competitive bidding to explore coal-to-gas, liquid and polychemicals. We will auction the coal mines for these projects," the secretary said.

The process of identification of blocks is under way, he said and added that the mines will not be out of the 204 cancelled blocks but would be fresh ones under the MMDR act.

According to industry sources, blocks that are otherwise difficult for conventional mining because of the nature of coal seams could be prioritised for auction under the new strategy.

"There is a technical committee which is identifying these blocks. So, I have asked them to identify and come back," he said.

Asked to provide a timeline for the competitive bidding, the secretary said, "(It should be) this financial year. So, let me first get those identified, then we will go to the cabinet to seek mandate and do it."

"Why we want to do this is very clear. Because it is something which is unexplored for the country. It requires some new technology. It requires new partners. So, those companies who would like to venture into this area should be assured of at least the coal block so that they can plan their investment," Kumar said.

The Centre has so far auctioned/allotted 82 coal mines under the provisions of the Coal Mines (Special Provisions) Act, 2015. Of these, 31 have been allocated through e-auction and 51 by way of allotment.

(Source: https://www.telegraphindia.com/)