No auction of coal mines in the next 2-3 months

The government would not conduct any auction of coal blocks for the next two to three months

The Dollar Business Bureau

Coal Secretary Anil Swarup on Tuesday said the government would not conduct any auction of coal blocks for the next two to three months since there are not many takers of coal mines.

"I don't see auction of coal blocks in the near future at least in the next two to three months....We feel that this may be not the right time for going ahead with auctioning of mines because there are not many takers of coal," Swarup said.

He said the Coal Ministry is not planning to invite private players, but would make further decisions when demand picks up in the domestic market.

Answering a question on the next step of commercial mining, Swarup said problems persist in this segment. “Going by the experience, we had in the last round of auction there were hardly any takers so now whatever problem comes is the dilemma that we face.".

"Everything is ready. The day we want to do it within 15 days we can get cracking. (We have) discussed with industry, there has been across the board consultations (on the same)" the secretary said. Swarup said he would approach the Cabinet related to the auctions of linkages of power sector.

To stimulate coal in the domestic market, the government has asked states to purchase coal from CIL’s growing stockpile.

Earlier, the Coal Ministry had directed an authority to conduct the allotment of 16 mines for coal sales.

On April 21, the government had notified the allotment process of eight mines.  “… but due to unavoidable circumstances, the schedule for allotment process was deferred,” he said

The Dollar Business Bureau - Jun 22, 2016 12:00 IST
 
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