Coal news and updates

Centre puts captive coal block auction on hold

The Centre has postponed the plan to auction five captive coal blocks, as it decided to seek the views of coal-bearing States on the proposal.

On behalf of the coal ministry, Central Mine Planning and Design Institute was supposed to float a tender for two thermal and three coking coal reserves on Wednesday.

However, in a late decision, the Coal Ministry decided to seek opinions of coal-bearing States on the auction programme.

The State’s are requested to respond latest by February 10. While the fresh schedule for auction is yet to be firmed up, sources say sections within the Government are not comfortable with auctioning the blocks in a hurry and landing up in fresh controversies.

Business Line had earlier reported that the Coal Ministry was in an unusual hurry to auction the blocks.
Applications

Meanwhile, in a parallel development, 27 State-owned electricity distribution companies (discoms) applied for allocation of four captive coal assets, to be offered through the Government dispensation route.

The assets will be used in attracting investment in power generation through tariff-based biding.

Source: The Hindu Business Line