Without giving any appropriate reason, the Indian government has postponed upcoming allocations of coal blocks for commercial mining. Also after defers, the government did not announced any schedule further.
In April, the Indian government has initiated the process of commercial mining coal block allotment with 8 blocks. The ministry has invited with application forms for government controlled and operating mining companies.
This had properly scheduled such as, the participating companies would have to submit applications until 31 May’16. The opening of application process was scheduled on 1 Jun’16 for processing by the nomination committee. The final award of the blocks was scheduled for 19 Jul’16.
In order to take Indian coal mine allotment to the next step, the coal ministry had identified list of 16 coal mines situated in five different states in Mar’16, which will be allotted to public sector units for commercial mining. Under the allotment, PSU’s will be allowed to mine and sale the fuel commercially.
The allocation list of 8 blocks are considered in first phase of allocation of commercial mining, which will allow merchandise sale of coal.
However in Dec’15, the government had also postponed the auction of 9 coal blocks in the wake of poor response as the bid value is not reflecting the actual worth of mines. While at present, the government have not declared any reason behind defers of block allocation.
“It is to be noted that there are many issues taken into consideration. Many of the regional government’s mining entities are not capable at a time when their own balance sheets were stressed and hence would be prevented in committing investments in developing the blocks,” a senior officials said.
On the other side, currently, there is enough coal availability in the country as Coal India had raised its coal production in last fiscal. However, it would be a difficult task to find merchant buyers at the given scenario.
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