Coal news and updates

State-owned power co expects to get back lost block

October 27: Even as the government plans to hold auction of cancelled blocks at the earliest, a state-owned power firm that lost its captive blocks expects that it may be re-allocated the same.

“Our understanding is that state-owned power utilities may be re-allocated their blocks once the auction for private companies is over,” said a source in a central public sector undertaking, requesting anonymity.

“For us, the current coal shortage is a concern, but we hope it won’t be a prolonged agony,” he said.

Another industry source said that even state agencies that have been kept out of the purview of the proposed auction may get some relaxation, going forward.

“It is difficult to read the government’s mind, but since the auction is being proposed only for the private sector, state agencies may be dealt with separately,” he said.

This would give reprieve to state-owned power firms that used to source coal from such agencies, he added.