Kolkata: Union Minister of State for coal Dasari Narayan Rao today (Nov 24, 2004) ruled out privatisation of coal mines and said that the UPA (United Progressive Alliance) Government would not press for passing of the Coal Mines Nationalisation (Amendment) Bill, 2000, to pave the way for private participation.

''The UPA Government is not going for privatisation of coal mines. The Government will only allow captive mining of coal by private players in the steel, power and cement sector etc,'' Rao who was in Kolkata in connection with the 7th International Mining and Machinery exhibition, told newsmen.

Asked about the fate of the Coal Mines Nationalisation (Amendment) Bill, 2000, Rao said, "We will not press for passing of the bill in Parliament.''

Union Coal secretary P C Parekh said that of the 136 captive coal blocks, 49 were allotted to different private companies for captive mining and their total production was 10 million tonne.

He said that the Government was considering a proposal of introducing bidding system for allotting new coal blocks to private companies. It would be sent to the Union Cabinet for approval.

The coal secretary said that over 80 applications from various private companies seeking captive coal blocks were now pending with the Government. Those blocks would be distributed to the companies who had applied before June 2004, on the basis of the existing system.

Under the present system, captive blocks were allotted by a screening committee, he said.