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Odisha seeks more revenue from coal block auction

Chief minister Naveen Patnaik today urged the Centre to maximize revenue generation for the state from the ongoing auctioning of coal blocks.

Patnaik, who met Piyush Goyal, Union minister for power, coal and new & renewable energy at New Delhi today, expressed concern over negligible financial benefits accrued to the state from the e- auction of coal blocks compared to other states.

Odisha has about a quarter of the country's coal reserves.

Patnaik pointed out that a large number of coal blocks in the state have been earmarked for power sector which witnessed a reverse bidding process and puts the state in a disadvantageous position.

Out of nine coal blocks of Odisha earmarked for auction so far, only one coal block was meant for the non-regulated sector like steel, aluminum and cement manufacturing units.

He said, a large number of industries in the state will suffer due to non-earmarking of adequate number of coal blocks to meet their captive requirements.

"The Union minister has assured that the Centre shall address the just concerns of the state and ensure that the industries of Odisha do not suffer on account of inadequate availability of coal for meeting their captive requirement and that the state government receives maximum revenue from the coal blocks auction process", read an official release from the chief minister's office.

"A large coal block will be earmarked for commercial mining for the benefit of the industries of the state. In addition, another significant coal block will be allocated to a state PSU", the release said quoting Goyal.

Recently, Patnaik in a letter to prime minister, Narendra Modi had pressed for allotment of more blocks for the unregulated sector.

source: http://www.business-standard.com