Coal news and updates

Centre earns over Rs.2 lakh cr from e-auction of coal blocks, exceeds expectations

The Narendra Modi government deserves credit for moving on a war footing to clean up the Coalgate mess with the successful e-auction of mines and taking the initiative to revive the country's energy sector with quick decision-making, replacing the policy paralysis of the erstwhile UPA government.

Figures released by Coal Secretary Anil Swarup show that the proceeds from the sale of 32 mines in the coal block e-auctions have crossed Rs2 lakh crore.

The amount surpasses the CAG's estimate of Rs1.86-lakh-crore loss on account of the allocation of blocks without auction during the UPA regime. The Supreme Court had cancelled the allocation of 214 blocks.

Apart from the e-auction proceeds another Rs97,000 crore of additional tariff benefit will accrue to the consumers of power through reverse auction of coal blocks, according to Swarup.

The then Comptroller and Auditor General of India Vinod Rai had come under heavy criticism from the Congress leadership for arriving at a highly exaggerated estimate for the presumptive loss due to allocation of these mines which were subsequently cancelled by the Supreme Court.

The policy paralysis during the UPA regime in the wake of a spate of scams, including Coalgate, wreaked havoc on the country's energy sector. Power plants could not be commissioned as there was not enough coal to fire them. This had a cascading effect on the banking sector as huge loans given to these ventures turned bad, and public sector banks have been saddled with the crushing burden of ever-increasing non-performing assets.

 
source: http://indiatoday.intoday.in