Coal news and updates

Government to auction eight coal blocks to cement companies

Two mines each from Madhya Pradesh, Jharkhand, Maharashtra and West Bengal will go under the hammer when companies from the iron and steel, cement and captive power plants will bid for a total 1,143.42 million tonnes (MT) of coal reserves.

Directions have been issued to the nominated authority for auctions, joint secretary, Coal, Vivek Bhardwaj, to conduct the auction, and the notice inviting tenders will be issued on Friday, Mr Swarup said. The auction will be held between January 18 and 22 next year, he added.

The coal mines to be e-auctioned in the fourth tranche are: Brahampuri and Suliyari (Madhya Pradesh), Bundu and Gondulpara (Jharkhand), Gondkhari and Khappa Extn.

In the earlier three phases of mine auctions, the government has awarded close to 45 coal mines to both power and unregulated sector unlocking revenue of Rs 3.5 lakh crore for a period of 30 years for the mineral rich states. The e-auctions are taking place following the Supreme Court decision a year ago to cancel the allocation of 204 coal mines to companies without auction.

Of the 34 mines that were auctioned in the previous rounds, which were already producing, mining leases have been given to 29 mine owners, he said. Reminding that his ministry has made a decision to ensure supply of quality fuel by supplying crushed coal from January 1 next year, Swarup said state-run Coal India is also progressing well to set up 15 washeries to supply clean coal.

Going forward, the Coal Ministry would auction coal linkages to the state utilities through tariff-based bidding under the UDAY scheme for power distribution sector revival.

Centre is also considering whether linkages of inefficient plants could be diverted to efficient ones to help increase generation of coal-fired electricity, Swarup said and reasoned that this would be a part of the UDAY package, announced by the government to revive the discoms.

The Secretary said Coal India is "well on way of achieving 550 million tonne coal production target" for the current fiscal and has crossed the 300-MT output mark this week.

source: http://observerleader.com