Coal Ministry to come up with draft rules for e-auction for 74 coal blocks

The Coal Ministry is likely to issue draft rules for e-auction for 74 coal blocks, the rules will be put up for public consultation as well as stakeholder consultation too, it is being done to be fair to all the parties involved. The draft rules are expected to provide clarity on compensation and will pave way for a cap on tariffs levied. Earlier, the government as per its plan to allocate coal blocks through auction by February next has asked the allottees of 74 mines to provide information about their fields by November 25. These 74 mines are part of those 204 coal blocks whose allocation to various companies since 1993 was quashed by the Supreme Court on the ground that they were done in an illegal manner. The coal block allottees have been asked to provide details on environment clearance, production and land status. They have to submit copies of geological report and environment clearance and forest clearance, production details, status of land (mine and infrastructure) acquisition and details of capital investment. For determination of the valuation, the government would use data like year-wise and cumulative production till March 2014 and for FY15; cost of land acquired for mine and infrastructure; cost incurred on rehabilitation and re-settlement; details of operating costs including outsourcing costs etc. The government had recently set up a high-level inter-ministerial committee to ensure the smooth allocation of 204 cancelled coal blocks and is planning to build a consensus on the modalities for coal block auctions. It will also consult stakeholders including industry associations like FICCI, CII, Assocham and coal and power producers' associations on ways to undertake coal block auctions.