Govt earmarks `937 cr for exploration of non-cil blocks in FY20

NEW DELHI: The government has allocated Rs 937 crore for exploration of mines that are not associated with Coal India, for the ongoing financial year, Parliament was informed on Monday. Of this fund, Rs 120 crore has been earmarked for regional exploration and Rs 817 crore for detailed drilling, Coal Minister Pralhad Joshi said in a written reply to the Rajya Sabha. "The government has allocated funds of Rs 937 crore...in the current financial year 2019-20 for carrying out exploration in non-cil (Coal India) blocks in coal and lignite," he said. Regional exploration has been planned for 37 coal blocks and 10 lignite blocks whereas detailed drilling has been planned for 121 coal blocks and one lignite block, Joshi said adding that such exploration programme is approved

medium-term PPA holders. With this, stressed power stations may be revived. Further, this will also enable deepening of power market being traded through power exchange."

Making coal available for short-term to stressed power plants was one of the recommendations of the high-level committee headed by then Cabinet Secretary P K Sinha. The panel had submitted its report in November last year.

The methodology provides that within 45 days (by January 16, 2020), the coal companies, CIL and SCCL, will earmark areas and mines within their subsidiaries that will be allocated for use as per these guidelines and publish the same on their websites indicating the quality of coal (gross calorific value/grade), the quantum of coal available, period for which such coal shall be made available and every year. Exploration of non-cil coal blocks is carried out under the Central Sector Scheme 'Exploration of Coal & Lignite' of the coal ministry. Under this scheme, both regional exploration and detailed drilling of these blocks are conducted.

the schedule for start of supply of coal.

It also provided that auctions for coal linkage under this methodology shall be carried out every quarter to cater to the dynamic requirements and demand variations in short-term and day-ahead markets.

An annual calendar shall be published on coal companies' websites showing the months in which the auctions

will be held.

The quantity of coal linkage that a plant may bid will be decided as per the heat rate, which shall not be more than 2,600 kilocalorie/kilowatt hour for the untied capacity of the plant (for which the PPA is not signed).

The Central Electricity Authority will call for applications and publish a list of eligible plants, their heat rate and capacity.