Centre will have to expedite coal block auction policy

  • HT Correspondent, Hindustan Times, New Delhi
  • Updated: Aug 26, 2014 01:14 IST

The National Democratic Alliance (NDA) government may have to expedite implementation of the coal auction policy that the UPA government had approved last year.

In September last year the UPA cabinet had approved a policy to give coal-mining licences to private companies through the competitive bidding route.
The new auction-based system, a first in India, was brought in to replace the earlier controversial policy of allotting coal blocks based on the recommendations of a bureaucrats’ panel called the ‘screening committee’.

The decision followed the relentless attack from the Opposition on the UPA government after India’s national auditor, the Comptroller and Auditor General (CAG), suggested in a report last year that the arbitrary allocation of coalfields may have robbed the exchequer of potential revenues of `1.86 lakh crore between 2004 and 2011.

The new rules were aimed at making allocations more transparent and keeping non-serious players out of the fray as many companies that were given coalfields earlier haven’t yet started mining operations.

Under the new rules, successful bidders will have to disclose a work schedule, make payments linked to the volume of coal dug out from the mines apart from shelling out an upfront fee equivalent to roughly 10% of the estimated value of the coalfield.

The successful bidders will get two years to explore and five year to develop the mines. The coal blocks will come bundled with preliminary environment and forest approvals before they are auctioned.

More than half of India’s power is produced from coal. State-owned Coal India Limited accounts for nearly 80% of the country’s coal output, but it isn’t enough to meet India’s rising energy demand.

Earlier, Coal fields were allocated by a screening committee of bureaucrats. Interested firms were ranked on the basis of different parameters such as land and environmental clearances.

Under the policy that the UPA government had approved, coal fields were to be auctioned through a transparent competitive bidding. Blocks put up for auction will come pre-approved with preliminary environmental clearance. It had also made it mandatory for successful bidders to make production-linked and upfront payments.

From Around the Web
Sponsored by Revcontent

also read

Manmohan didn’t believe PC Alexander when told about his appointment as FM
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome