Cancellation of coal blocks allotted since 1993 (including NDA regime) where no development has taken place will

defuse current crisis Out of 99 Blocks allocated to Private players since 1993, 60 coal blocks with 6.7 billion tonnes (ER) valued at nearly Rs 2 lakh crores can be cancelled due to lack of progress as ascertained by Ministry of Coal in the meeting of January 2012
Background 1. Total Coal Blocks Awarded: 195 Blocks (Not including 23 de-allocated Blocks) Public Sector 1 2 Pre-2004 Between and 2009 Total 17 67 84 Private Sector 22 77 99 UMPPs Total 39 156 195

2004

12 12

2. Private sector Blocks: Ninety-Nine (99) No of Blocks 1 2 3 Included in CAG Report Pre-2004 Blocks Underground Blocks - Not considered by CAG (post 2004) Total 57 22 20 Extractable Reserves (Million Tonnes) 6282 420 1120 Undue Benefit (Rs crores) 1,85,591 12,421 NIL

99

7,822

1,98,012

3. Break up of blocks between power (regulated sector) and non-power (free market sectors - cement, steel) sectors

Private sector blocks

Power

NonPower 17 54 71

UMPPs

Total

1 2

Pre-2004 Between 2004 and 2009 Total

Page 1 of 12

5 23 28

0 12 12

22 89 111

4. There are three major milestones in the lifecycle of a coal block development Prospecting License (for unexplored blocks) Forest Clearance - takes 48 to 60 months as per Ministry of Coal's estimates Land Acquisition

5. Under the coal block allotment rules (and as specified in each of the coal block allotment letters), the scheduled timelines for development of mines is only 42 months or three and half years for the open cast mines having forest land. For almost all of these coal blocks, this time has elapsed.

Status of coal blocks ascertained by Ministry of Coal

6. In January 2012, a review meeting on coal block status was taken by Additional Secretary (Coal) Smt Zohra Chatterji. (Minutes of meeting enclosed). Two more meetings of Inter-Ministerial group have been held since then (last in August 2012) 7. Other Ministries were also represented in this meeting. The following was noted about the status of coal blocks (detailed status of pre-2004 blocks in Annexure 1 & post 2004 in Annexure 2)

Sl. No. 1 2 3

Pending

No of Blocks (79 total) 60 53 7

Total Extractable Reserves ( in MT) 6683 6,263 420

Undue Benefits (CAG methodology) 197,431 185,010 12, 421

Total no-progress blocks UPA regime (2004 onwards) NDA regime (1998-2004)

Page 2 of 12

Suggested way forward

8. It is suggested that Government takes firm action based on lack of progress as ascertained by the Ministry of Coals review meeting in January 2012, which would be viewed in routine course.

9. Steps to be followed a. Government reviews the responses given by Coal Block Allottees to Show Cause Notices and Advisories issued to them post January 2012 meeting. b. The Inter-Ministerial Group meets once again and recommends cancellation of all coal blocks that are not likely to produce coal by March 2013 due to lack of progress. c. 60 blocks having almost all the reserves cited by CAG (6.7 billion tonnes) can be cancelled and handed over to Coal India for development immediately as the present allocatees have not concluded Land Acquisition. d. To compensate the regulated sectors (power plants) which have been set up on the basis of these blocks, linkage from Coal India may be granted and Fuel Supply Agreements (FSA) signed as per policy. This will ensure that the developers do not get affected and investments in end use plants do not get stranded and investor sentiment is not affected. The other sectors always retain the option of participating in competitive bidding for coal blocks or importing coal to fulfill their requirements. e. Similar exercise could also be done for 20 underground blocks.

Note: All Data is sourced from Ministry of Coals website and CAG Report dated 11 May 2012.

Page 3 of 12

Annexure 1 Details of the blocks without Forest Clearance, Prospecting License or Land Acquisition pre-2004
Sl No Company Promoter State Block Name Date of Sector allotment Extractable Reserves (in million tonnes) 77 Undue benefit (Rs. Cr.) as per CAG methodology 2286

1 Monnet Ispat and Energy Ltd 2 GVK Power (Govindwal Sahib ltd) 3 Fieldmining and Ispat Ltd

Sandeep Jajodia GV Krishna Reddy Anil Taneja & Kavita Taneja, now sold to Wardha power (KSK group), Hyderabad Anil Taneja & Kavita Taneja, now sold to Wardha power (KSK group), Hyderabad Naveen Jindal

Odisha

Utkal -B2

16-Aug-99 Sponge Iron

Jharkhand

Tokisud North

7-Jan-02 Power

67

1984

Maharashtra Chinora

8-Oct-03 Sponge Iron

15

431

4 Fieldmining and Ispat Ltd

Maharashtra Warora (West), Southern Part

8-Oct-03 Sponge Iron

13

388

5 Jindal Steel and Power Ltd 6 Gondwana Ispat Ltd 7 Bhushan Ltd Total

Odisha

Utkal B 1

29-Sep-03 Sponge Iron

166

4917

merged into BS Ispat ltd (Govind Daga) Brij Bhushan Singhal

Maharashtra Majra

29-Oct-03 Sponge Iron

23

690

Odisha

Jamkhani

12-Nov-03 Sponge Iron

58 420

1725 12,421

Page 4 of 12

Annexure 2 Details of the blocks without Forest Clearance, Prospecting License or Land Acquisition after-2004
Sl No Company Promoter State Block Name Date of Sector allotment Extractable Reserves (in million tonnes) 56.21 Undue benefit (Rs. Cr.) as per CAG methodology 1660

1 Abhijeet Infrastructur e Ltd 2 Abhijeet Infrastructur e Ltd 3 Abhijeet Infrastructur e Ltd 4 Usha Martin Ltd 5 Neelachal Iron & Power Generation & Bajrang Ispat 6 Bhushan Steel & Strips Ltd & Others 7 Eleectrostee l Castings & Others 8 Essar Power ltd. & Hindalco

Manoj Jayaswal Manoj Jayaswal Manoj Jayaswal B K Jhawar Aditya Jajodia

Jharkhand

Brinda

5/26/2005

Sponge Iron

Jharkhand

Sasai

5/26/2005

Sponge Iron

Jharkhand

Meral

5/26/2005

Sponge Iron

Jharkhand Jharkhand

Lohari Dumri (Explored )

8/24/2005 1/13/2006

Steel Sponge Iron

9.05 40.85

267 1207

Brij Bhushan Singhal

Orissa

New Patrapara

1/13/2006

Sponge Iron

316.09

9338

Pradeep Kumar Khaitan Ruia family

Jharkhand

North Dhadu Mahan

1/13/2006

Sponge Iron, Steel Power

340.05

10045

Madhya Pradesh

4/12/2006

121.96

3603

Page 5 of 12

Sl No

Company

Promoter

State

Block Name

Date of Sector allotment

Extractable Reserves (in million tonnes) 32.17 210.56

Undue benefit (Rs. Cr.) as per CAG methodology 950 6220

9 Rungta Mines Ltd. 10 Rungta Mines Ltd. And Others 11 Essar Power Generation Ltd 12 JSPL 13 Hindalco & Tata Power Ltd 14 DB Power Ltd

N L Rungta N L Rungta

Jharkhand Orissa

Bundu Radhikap ur West Chakla

4/25/2006 4/25/2006

Sponge Iron Sponge Iron

Ruia family

Jharkhand

2/20/2007

Power

71.14

2102

Naveen Jindal

Jharkhand

Jitpur Tubed

2/20/2007 8/1/2007

Power Power

65.54 130

1936 3840

Anil Agarwal & Jharkhand Ratan Tata Dainik Bhaskar Chattisgarh (Ramesh Chandra Agarwal) Maharashtra

Durgapur II/Sariya

11/6/2007

Power

66.92

1977

15 Adani Power Gautam Adani Ltd.

16 CESC Ltd & Sanjiv Goenka, Jharkhand JAS Manoj Infrastructur Jayaswal e 17 Monnet Sandeep ispat & Jajodia Energy Ltd, Tata power Orissa

Lohara 11/6/2007 West Extension Mahuagar 1/9/2008 hi

Power

140

4136

Power

160.6

4744

Mandakin iA

1/9/2008

Power

287.89

8505

Page 6 of 12

Sl No

Company

Promoter

State

Block Name

Date of Sector allotment

Extractable Reserves (in million tonnes)

Undue benefit (Rs. Cr.) as per CAG methodology

18

19

20

21

22

23

Ltd and Jindal Photo Ltd JSPL Ispat & Gagan Sponge iron Ltd. SKS Ispat & power Ltd & Prakash Industries Rungta Mines Ltd. & Sunflag Iron & Steel Ltd. JSW Steel Ltd., Bhushan Steel Mukund Ltd, Vini Iron & Steel Udyog Ltd Strategic Energy And Tech System Ltd. (Tata-Sasol JV)

Naveen Jindal

Jharkhand

Anil Gupta, Chattisgarh Sudhir Kant Sahai N L Rungta Jharkhand

Amarkon 1/17/2008 da Murgadan gal Fatehpur 2/6/2008

Power

299.3

8842

Power

87.6

2588

Choritand Taliya

5/14/2008

Pig iron

70.81

2092

Sajjan Jindal

Jharkhand

Rohne

5-Jun-08

Steel

191

5642

Jharkhand

Ratan Tata & Orissa Sasol JV

Rajhara 20-Nov-08 North (Central & Eastern) North of 27-Feb-09 Akrapal

Steel

15.61

461

CTL

1,095.00

32347

Page 7 of 12

Sl No

Company

Promoter

State

Block Name

Date of Sector allotment

Extractable Reserves (in million tonnes) 100.01

Undue benefit (Rs. Cr.) as per CAG methodology 2954

24 Tata Steel Ltd. & Adhunik Thermal Energy Ltd. 25 Himachal EMTA/ JSW Steel Ltd 26 Jayaswal Neco Ltd. 27 Tata Steel Ltd. 28 Tata Steel Ltd 29 Corporate Ispat & Alloys Ltd 30 Bhushan Power & Steel Ltd 31 JSPL & Nalwa Sponge Iron Ltd. 32 Jayaswal Neco Ltd.

Ratan Tata

Jharkhand

Ganeshp ur

28-May-09

Power

Sajjan Jindal

West Bengal Gouganrd ih ABC Jharkhand Jharkhand Moitra Kotre Basantpu r Panchmo Chitarpur

10-Jul-09

Power

61.54

1818

Manoj Jayaswal Ratan Tata

13-May-05 11-Aug-05

Steel Steel

29.91 93.05

884 2749

Ratan Tata Manoj Jayaswal

Jharkhand Jharkhand

11-Aug-05 2-Sep-05

Steel Sponge Iron

61.28 58.66

1810 1733

Brij Bhushan Orissa Singhal Naveen Jindal Chattisgarh

Bijahan (Unexplor ed block) Gare Palma IV/6 Gare Palma IV/8

13-Jan-06

Sponge Iron

161.2

4762

13-Jan-06

Sponge Iron

66.37

1961

Naveen Jindal

Chattisgarh

13-Jan-06

Steel

11.75

347

Page 8 of 12

Sl No

Company

Promoter

State

Block Name

Date of Sector allotment

Extractable Reserves (in million tonnes) 94.96

Undue benefit (Rs. Cr.) as per CAG methodology 2805

33 Ultratech Others

& Kumarmangala m Birla Anil Agarwal

Chattisgarh

Madanpur 13-Jan-06 North Madanpur 13-Jan-06 South

Power, Sponge Iron Power, Sponge Iron

34 Madanpur South (JVC of Hindustan Zinc Ltd) 35 Chattisgarh Captive Coal Mining Ltd (JVC of Ispat Godavari & Others) 36 Chattisgarh Captive Coal Ltd (JVC of Ispat Godavari & Others) 37 Tata Sponge & Otehrs 38 BALCO

Chattisgarh

115.74

3419

BL Agarwal

Chattisgarh

Nakia I

13-Jan-06

Sponge Iron

98.32

2904

BL Agarwal

Chattisgarh

Nakia II

13-Jan-06

Sponge Iron

Ratan Tata

Orissa

Radhikap ur East

7-Feb-06

Sponge Iron

105.24

3109

Anil Agarwal

Chattisgarh

39 Sova Ispat & Aditya Jajodia Jai Balaju Sponge Ltd

Durgapur II/ Taraimar West Bengal Ardhagra m

6-Nov-07

Power

70.12

2071

6-Dec-07

Sponge Iron

1.86

55

Page 9 of 12

Sl No

Company

Promoter

State

Block Name

Date of Sector allotment

Extractable Reserves (in million tonnes) 3.76

Undue benefit (Rs. Cr.) as per CAG methodology 111

40 Birla Corporation Ltd 41 Electrotherm India Ltd., Grasim Industries

Harsh V Lodha

Madhya Pradesh Chattisgarh

Bikram

12-Aug-08

Cement

Mukesh Bhandari, Kumarmangala m Birla

Bhaskarp ara

21-Nov-08

Sponge Iron

18.67

552

42 Domco Unavailable Smokeless Fuel Pvt Ltd 43 Essar Power Ruia family Ltd. 44 Bhushan Power & Steel Ltd 45 AES Chattisgarh Energy power Pvt Ltd 46 Arcelor Mittal india Ltd & GVK power (G.Sahib)

Jharkhand

Lalgarh North Ashok Karkata Central Patal East Sayang

8-Jul-05

Pig iron

10.02

296

Jharkhand

6-Nov-07

Power

40.7

1202

Brij Bhushan Jharkhand Singhal AES group Chattisgarh

6-Nov-07

Power

74

2186

6-Nov-07

Power

55.5

1640

Lakshmi Mittal Jharkhand & GVK Reddy

Seregarh a

9-Jan-08

Power

55.5

1640

Page 10 of 12

Sl No

Company

Promoter

State

Block Name

Date of Sector allotment

Extractable Reserves (in million tonnes) 238.74

Undue benefit (Rs. Cr.) as per CAG methodology 7053

47 Sterlite Energy, GMR Energy, Arcelor Mittal india Ltd. Lanco Group, Navabharta power (IPP), Reliance Energy 48 Sterlite Energy, GMR Energy, Arcelor Mittal india Ltd. Lanco Group, Navabharta power (IPP), Reliance Energy 49 JLD Yavatmal Energy, RKM Powergen, Vandana Vidyut, Visa

Anil Agarwal Orissa and others

Dip Side 17-Jan-08 of Rampia

Power

Anil Agarwal Orissa and others

Rampia

17-Jan-08

Power

Athena energy Chattisgarh ventures (Vijay Kumar) and others

Fatehpur

23-Jan-08

Power

185

5465

Page 11 of 12

Sl No

Company

Promoter

State

Block Name

Date of Sector allotment

Extractable Reserves (in million tonnes)

Undue benefit (Rs. Cr.) as per CAG methodology

Power, Green Infrastructur e

50 Bihar Umesh Modi Sponge Iron Co. Ltd 51 Jindal Steel Naveen Jindal Power

Jharkhand

Macherku nda Ramchan di Promotio nal Block Mednirai

5-Aug-08

Power

8.83

261

Orissa

27-Feb-09

CTL

555

16395

52 Rungta NL Rungta Mines Ltd/ Kohinoor Steel Pvt Ltd 53 IST Steel & N. power, Sekhsaria Gujarat Ambuja Cements, Lafarge india Ltd Total

Jharkhand

28-May-09

Power, Sponge Iron

29.91

884

S. Chattisgarh

Dahegao n Makardho kra

17-Jun-09

Steel/ Cement

48.84

1443

6,263

185,010

Page 12 of 12