JOIN USSoon, new coal block allotment policy
The Centre will frame the coal block auction policy after getting the recommendations from the Suresh Prabhu-headed Advisory Group for Integrated Development of Power, Coal and Renewable Energy.
The panel, constituted by the Narendra Modi-led government to bring synergy in framing policy in energy related sector, is likely to submit its report to the government within a month, sources said.
With the apex court last month cancelling allocation of 214 coal blocks, the Ministry of Coal is working on future plan of allotment through a transparent manner, including auctioning of blocks. “The ministry is awaiting the recommendations by the Suresh Prabhu-headed panel and finalise the auction policy/methodology with modifications to the existing coal allotment policy within a period of two months,” it said.
The Centre is also planning to convene a meeting of leaders of different political parties and related sector representatives like power and steel to seek their views on future policy, sources said. With the demand to open up coal mining sector to commercial mining, the Coal Ministry also wants to seek views from various stake holders before taking decision on this issue, sources added.
Apart from this, the Coal Ministry will constitute an inter-ministerial committee headed by the additional secretary to study the apex court judgment on the coalgate scam and give inputs to the future coal allotment policy. This panel will have officials from the ministries of steel and power.
Though the UPA government had, in September, approved a methodology for auctioning coal blocks, providing for upfront and production-linked payments and benchmarking of coal sale prices, the NDA government has decided to revisit the previous government’s policy in the backdrop of the Supreme Court verdict.
The UPA had in February this year issued notice inviting applications, offering three coal blocks for mining to companies engaged in production of steel, cement and sponge iron through competitive bidding.
The government later cancelled the auction, stating issues related to certain clearances need to be “revisited”. The UPA government also received criticism from both industry as well as the opposition for delay in auctioning of the coal block allotment.