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Govt planning to arrange coal linkages auction through competitive bidding

16 Jan 2015 Evaluate

With an aim to bring greater transparency in the allotment of coal linkages, the Government is now mulling auctioning coal linkages through the competitive bidding route and has also constituted an inter-ministerial panel to look into various models to implement it. 

The government’s statement notified that an Inter-Ministerial Committee (IMC) has been constituted with a view to consider various models and to recommend the optimal structure that would meet the requirements of all the stakeholders. The 16-member panel will have representatives from the ministries like Power, Railways, Steel and Legal and NITI Ayog.

The government is set to auction coal blocks, including operational and several others close to production, after the Supreme Court in September cancelled all mine allotments since 1993. The government will auction total 101 coal mines out of which 65 mines will be allocated to private players while 36 other blocks will be directly allotted to state-owned companies. Furthermore, it is targeting revenue of Rs 1.47 lakh crore from the allotment and auction of 92 cancelled coal blocks in the first round of auction. Out of the 92 cancelled coal blocks, 57 mines will be allocated to power sector while 35 other blocks to non-power sector and captive power plants.

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