Coal news and updates

EUPs of de-allocated blocks will get linkage if they participate in block auction

April 06: The end use plants (EUPs) linked with captive coal blocks, which was de-allocated as per Supreme Court order in September 2014, will have the option to get coal linkages provided they participate in auction of coal blocks, Secretary (Coal) Anil Swarup has said.

“Our logic is very simple on granting linkages to erstwhile allocatees of coal blocks. If you don’t participate in coal block auction, you shall not get coal linkages. So better participate in coal block auction,” Swarup said in Kolkata on April 5.

The Secretary (coal), however, said there will be no coal linkages before it is proved that the company or EUP has participated in auction of coal blocks.

“How can we allow coal linkages be given in advance and after that they will participate in auction? They will not. How do we get a better bid, if we announce upfront that in any case whether you participate or not, you will get coal linkages?” Swarup asked.

“I have to look for optimum revenue for the government. I am not saying the maximum, but optimum revenue. What sort of auction will I have, if I tell you will get coal?” he said, adding, “What I am saying here is that if you don’t participate in auction, you will not get any allocation of coal.”

“You better participate. You may not win a block and that’s a different thing and then we will consider what we will do, but you cannot sit tight on your hunches and then say that in any case the government is going to allocate coal and why should I participate in auction,” Swarup said.

“You better participate in auction. There will be more and more blocks in the offing. It will not end with 67 blocks allotted so far. So participate in auction,” the Secretary (Coal) said.