Indian Coal Ministry adds 40 More Coal Blocks

Indian government in order to take next step for auctioning process has added 40 more coal blocks for auction & allotment.

Post the SC’s verdict for cancellation of 204 coal blocks, which were declared as illegal, the government decided to auction & re-allocate these blocks in different phase. The ministry on 25 Dec, 2014 kick-started the auctioning process of schedule II for canceled coal mines with the launch of a portal for electronic bidding.

In order to step ahead the auction process, the government has put 40 mines in next phase. Out of 40 mines, 23 coal blocks are put under hammer in Schedule III and rest 17 mines (schedule II) will be directly allocated to end-use plants.

23 mines, which will be auctioned in Schedule III, are likely to start production in coming few months. Out of 40 mines, 26 blocks would go for power plants (9 in schedule III & 12 in allotment of schedule II) and rest 14 mines would reserved for sectors such as Iron & steel, cement including captive power plants.

The entire mine allocation process for Schedule II (in production) is expected to complete till 31 Mar, 2015 with the signing of Coal Mine Development and Production Agreement, as per the government.