In a move that will expedite coal supply and enhance power transmission across states, the Centre has finalised the agreements with all the nine successful public sector undertakings (PSUs) - both Centre as well as State-owned - which have been directly allotted under production coal blocks in the auction process.
Sources aware of the development said that all the allotment agreements were inked before March 31, 2015 which was the deadline given by Supreme Court for bidding out all the operating blocks.
Under the 'allotment order' which is the nomenclature given to the final agreement by the Coal Ministry, the title and interests in the concerned coal blocks have formally been transferred to the PSUs to which they have been allotted.
The allotment orders have been inked between the successful PSUs and the Nominated Authority (a Joint Secretary of the Coal Ministry, who has been appointed by the Centre to oversee the entire coal blocks auction process).
With the completion of this formality, the concerned PSUs will now be able to take control of the coal blocks and fulfill their generation targets. This in the long run, will ensure smoother transmission and distribution of power to states which have been facing shortage.
Apart from this, the Coal Ministry has also finalised the agreements with all the 19 successful bidders which had received operating blocks through the auction route. These too were signed before the aforementioned deadline of March 31, 2015. The Nominated Authority and the successful bidders signed the agreements, which are called the Mines Production and Development Agreement.
While the pacts with under operation blocks have been finalised, the successful bidders as well as allottees of coal blocks which are yet to start production have been asked by the Centre to sign the agreements by April 30, 2015.
In case of PSUs which have been directly allotted coal blocks which are yet to start production, the deadline for signing final agreements with the Nominated Authority is April 30, while for successful bidders which have received blocks through the auction route, the deadline is April 15, 2015.
Blocks which are under production, had been placed under Schedule - II by the Centre for auction, while reserves which are yet to start operations, were put under Schedule - III. Schedule - I consists of all the 204 blocks which had been cancelled by the Supreme Court in October 2014. As of now 38 blocks have been directly allotted to PSUs by the Centre, while 29 coal blocks have been auctioned out.