While the Western Coalfields Limited (WCL) has been allocated five coal blocks in Odisha, the Central PSU is not able to operate these mines for which it is apprehended that the Union Government will be forced to put these mines for auction.

More than a year ago, when Maharashtra based coal major was allocated five coal mines in Odisha, Chief Minister Naveen Patnaik had voiced discontent over the decision of the Union Ministry of Coal (MoC) to allocate these new coal blocks to the WCL instead of the Mahanadi Coalfields Limited (MCL).

Notably, the Ministry of Coal had allocated Rampia, Dip Side of Rampia, Ghogarpalli, Dip Side of Ghogarpalli and Bijahan to the WCL.

Interestingly, all these coal blocks are located within the jurisdiction of the Mahanadi Coalfields Limited (MCL) as all these coal bearing areas are under operation of MCL.

While both WCL and MCL are subsidiaries of Coal India Limited (CIL), the Nagpur based coal PSU was allocated coal blocks in 2018.

Even as operationalisation of coal blocks requires close coordination with the State and district administration for land acquisition, rehabilitation and resettlement of project affected families, the MoC did not pay any heed to the objections of the State Government, and after more than one year, the WCL has not been able to make any headway.

Till date the WCL has not been able to enter into agreement for the development of coal blocks, for which there is apprehension that the Union Government will be forced to bring those under the hammer.

Earlier, the State Government had urged the MoC to allocate these coal blocks to State PSUs so that these mines could be developed without much delay. However, the MoC did not agree to the proposal at that point of time, said sources.

The Odisha Mining Corporation (OMC) and Odisha Coal and Power Limited (OCPL) are eminently suitable for development of coal blocks in the State. Meanwhile, the Union Government has made a proposal that a State PSU may collaborate with the WCL for development of these coal blocks.

It seems, the MoC has now softened its stand keeping in view the inability of the WCL in developing the coal blocks, which has resulted in loss of huge revenue for both State and Union Governments and most importantly production loss of coal too.