India: Government likely to auction 49 Coal Blocks

Post cancellation of coal blocks, the government is likely to put 49 canceled coal blocks on e-auction.

Indian government is going to auction 49 coal blocks to the private companies, which expected to reserve 24 coal blocks for steel manufacturers and17 for power producers. Earlier, the government has formed a sub-committee to evaluate coal block auction to private companies as well as block allocation to government companies.

The panel has recommended to reserve 8 blocks for domestic cement plants. It also suggested to allocate coal blocks to government companies that were earlier owned by PSU’s and put all mines on e-auction, which were earlier hold by private companies for captive use.

A government official said, “Private coal blocks recommended for auction, while, government blocks for allotment. On the other hand, coal mines, which were utilizing for commercial purpose, have been recommended to put on e- auction that should not considered as power or cement companies.”

The Ministry of Coal has selected MSTC (Metal Scrap Trade Corporation Limited), a government owned company, as an agency to conduct e-auction for canceled coal blocks.

Coal Blocks to be auctioned