Gujarat asks centre to reserve Lignite Mines for only state govt

Considering the important of Power Sector and provide electricity at affordable rates, Gujarat Energy and Petrochemicals Minister Shri Saurabhbhai Patel today urged the Central Government that the present arrangements for allotting coal mines to the State Government undertaking on nomination basis should be continued. While speaking at the meeting of the State Ministers’ for mining and geology held here under chairmanship of Union Minister Shri Sriprakash Jaiswal, Gujarat Minister also demanded that 70% coal blocks should be reserved for power sector.

Addressing the meeting, Patel demanded that lignite mines should be kept reserve for only State Government for power generation and distribution for small and medium industries. Lignite is available only in Gujarat, Rajasthan and Tamilnadu and as these States are located far away from coal mines. Transportation cost of coal is very high and there is justification for reserving lignite mines.

He also appraised that State Government recommended for domestic coal blocks to ultra energy project located at Mundra by Tata Power Co. on nomination basis so that cost of power is reduced. At present Tata Ultra Power Project is based on imported coal with their very high fuel cost.

The State Government also welcomed the proposed amendment for introduction for allotment of coal blocks through competitive bidding in order to promote private investor in coal mining sector for steel, cement and power.

Gujarat has also offered to participate along with Coal India Ltd. for overseas acquisition of coal mines in countries like Indonesia, South Africa and Mozambique

Shri S. Jagdeeshan, Principal Secretary (Energy and Petrochemical), Shri M. Sahu, Principal Secretary (Ind. & Mines) and Shri P.K. Gera, Resident Commissioner of Gujarat Government attended the meeting