The coal ministry has
decided to auction 54 blocks on upfront payment basis but might not offer mines
to power companies.
The coal ministry would initiate
auction within a month by putting the list of blocks on its website.
Information on estimated reserves, exploration status and environmental clearances
would also be provided.
Preference would be given to
companies setting up end use projects in the same state that hosts the coal
block and agree to match the highest bid.
The blocks lie in the coal belts
of seven states of Chhattisgarh, Jharkhand, Maharashtra, West
Bengal, Orissa, Madhya Pradesh and Andhra Pradesh.
“Based on comments received
from stakeholders, we have decided to bid coal blocks on the amount
of upfront payment a bidders agrees to pay. We would soon put the list of
blocks earmarked for each sector including steel and cement,” a ministry
official said.
Though competitive bidding route
would not be applicable to centre and state government projects, PSUs would be
asked to pay reserve price for coal blocks. “There will be no free
lunches. Companies asking for coal blocks will have to pay a reserve price and
the collections would go to states' exchequer,” the official added.
Source: The Economic Times
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