Post cancellation of coal blocks, the central government has formed a panel to access the compensation value, which will be paid to the companies for acquiring their coal blocks.
In order to resolve the issue related to coal blocks, the central government has taken step and formed a committee to valuate compensation for 42 blocks, which were cancelled earlier by the SC. The committee includes member like senior officials, Joint Secretaries from coal ministry, power, finance & law.
Amid scarcity of coal in the country, the government is taking decisions expeditiously for auctioning process. The Central has given only 15 days time to the committee for submitting the recommendation of evaluation.
Out of the total 42 blocks, 37 coal blocks are running at present and the rest are likely to commence their operations from April, 2015.
Although, the Central has decided to allocate 21 coal blocks to government entities, the remaining 21 blocks are likely to put on the first phase of e-auction in competitive bidding, which will be open for end users engaged with power, cement and steel production.
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