Union Steel Secretary DRS Chaudhary requested his counterpart in the Coal Ministry SK Srivastava to allot Aluara and Parbatpur North coal blocks to Rashtriya Ispat Nigam (RINL).
The Aluara and Parbatpur North coal blocks are among the 17 blocks that the government would allot to public sector companies through a special dispensation route. Steel Secretary made this request to Srivastava in a letter.
Coal Ministry asked state-run firms to submit proposals in December 2012 for allotment of 17 coal blocks. Cumulatively, these blocks have an estimated 8.45 billion tonne reserves.
Chaudhary argued that RINL does not have any captive coal mines and allocation of these blocks would reduce dependence on imports and lower production cost for the firm.
Both are coking coal blocks based in Jharkhand. Aluara is an under ground block having an estimated 350 million tonne of geological reserve. Information on Parbatpur North is not available.
RINL requires coal blocks to meet the increase in raw material requirement as the company is in the process of doubling its production capacity from 3 mn tpa to 6.3 mn tpa.
Further, in the next 10 years, RINL plans to expand its capacity to 20 mn tpa and this would raise its raw material demand.
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