Coal news and updates

Rules for coal block auctions to have provisions to stop hoarders

The rules that the government is framing for coal block auctions will have provisions to stop potential hoarders who want to bid for large blocks without having corresponding fuel requirement, an official with knowledge of the matter said. They will also seek to ensure that steel, cement and power projects that consume coal get the dry fuel from their nearest blocks to save on costs.

"We have drafted the ordinance very carefully to ensure equitable distribution of coal to the end-use projects. Further, we are designing rules for the auction in a manner that project developers get coal only to meet their requirement during the lifespan of the plants," this official said. "Unlike before, the government will not give away large reserves to the industries with small requirements."

This week, government officials will make a presentation to Coal Minister Piyush Goyal on the rules that are being framed for the Coal Mines (Special Provisions) Ordinance.

The Supreme Court in August cancelled more than 200 coal blocks allocated to private and public sector firms, necessitating the auctions to
reallot them. On October 21, the government issued an ordinance to give broad guideline for the auctions, which are likely to be held next year.

The government is confident of making India self-reliant in coal production and reducing dependence on imported supplies once mining activities pick up. It is aiming to achieve self-reliance in coal production through private participation, deployment of better technologies in government-controlled mines, opening up new mines and providing better rail connectivity for the evacuation of coal.

Source: Economic Times