The government on Friday said it has notified rules for
allocation of coal blocks through competitive bidding process in
order to bring transparency in allotment. The auction will be done by the
Centre after fixing a minimum price for blocks on offer.
“In exercise of the powers conferred by the Mines and Minerals
(Development and Regulation) Act, 1957, the Central Government hereby
makes the following Rules… Auction by Competitive Bidding of Coal,” the Coal
Ministry said.
Describing the procedure for allocation, it said the offers will be invited
“through auction from the companies engaged in the business of specified
end-users” and they will be required to submit technical and commercial
bids.
On allocation of blocks to government companies, it said that the Centre will
identify areas and fix a reserve price. The Ministry said it will circulate to
states and the Power Ministry a list of areas containing coal for
inviting application from eligible government companies for allocation of
blocks.
“The state governments shall select a company or corporation on the basis
of competitive bids for tariff and recommend for allocation of area containing
coal to such company or corporation,” it added.
Coal blocks are currently offered to the end-users on a preferential basis by
an inter-ministerial screening committee. The need for competitive bidding
route was being felt in the wake of slow progress in mining operations in allocated
coal blocks.
Source: The Economic Times
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