Coal news and updates

Give preference to existing allottees in auction: Assocham

The Associated Chambers of Commerce and Industry (Assocham) has suggested that the Government should give preference to companies that have an operational or soon to be operational end-use project but have had their coal blocks cancelled.

Assocham has written to the Prime Minister’s Office saying that coal blocks already allotted for end-use steel projects should be auctioned only for steel projects while those for power projects should be auctioned only for power projects.

“The reserve price and upfront payment should be based on the actual mineable resource and not on the basis of geological reserves,” said the industry chamber in a statement.

“Clearances accorded to the existing coal blocks should automatically get transferred to the new allottees. Obtaining these clearances again will lead to considerable delays in commencement of production from mines and adversely affect the end-use project,” the statement added.

Source: The Hindu BusinessLine