Here's how govt plans to de-allocate coal blocks

The framework for the impending de-allocation of coal blocks has been fixed. The Coal Ministry has sent a notice to all allocatees and asked them to submit details on environmental clearances soon, failing which, their blocks will be de-allocated. CNBC-TV18’s Anshu Sharma reports the process of de-allocation could start in February itself.

The total number of coal blocks that are now being reviewed stands at 61, but as many as 41 of them are serious or critical cases, where the allocatees lack crucial clearances. Another 20 blocks have clearances like the environment nod and forest stage forest clearance, but have not progressed to obtain the second stage clearance. These blocks will be treated at a higher pedestal in this process and could scrape through.

However, what is certain is that almost the entire lot of 41 blocks without major clearances is set to go.

The Coal Ministry list does not make the distinction of which blocks fall in either of the two categories, and officials say that a final assessment or categorisation can only happen once the replies come in from the companies—on February 5 for those with virtually no clearance and February 12 for those with partial clearances. The first stage review will be done a week after February 5 and the second stage in two weeks after February 12.