The Rajya Sabha Tuesday passed a bill that seeks to bring more transparency in the process to award coal blocks to prospectors, amidst allegations of large-scale illegal mining in some states, notably Karnataka and Andhra Pradesh. 'Our aim is to bring genuine private players in the coal mining business. Now coal blocks will be awarded through bidding process. It will ensure transparency and bring more revenue to the government,' Minister of State for Coal Sriprakash Jaiswal said in the upper house of Parliament.
Currently, an inter-ministerial screening committee, which includes representatives from state governments concerned, allocates coal blocks to private firms engaged in generation of power, production of iron and steel and some coal washeries. This has attracted allegations of lack of transparency to the system.
Jaiswal said revenue generated from allocation of coal blocks would be given to the respective state governments. 'The entire revenue will go the state government. We will also ensure that the money is being spent on the development of that area,' he added.
Jaiswal pointed out that many people were using coal blocks as private land properties in different parts of the country. Production has not yet started at many coal blocks that were allocated to private players 7 to 10 years back.
He said the coal ministry had set up a committee to find out the reasons behind delays in production at the allocated coal blocks. 'There are many reasons behind it. In some cases it is delayed because of the non-clearance from environment ministry. While in some case people are just not serious in starting the work,' Jaiswal said.
Rajya Sabha passed the mines and minerals (development and regulation) amendment bill by voice vote.
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