Govt releases draft rules for coal auction, says blocks only for end-users

Coal Secretary Anil Swarup today released the draft guidelines to auction the coal blocks that were cancelled by the Supreme Court in September.

Swarup said that the guidelines, which are a follow up of the government ordinance, would be finalized only after a public discussion to ensure transparency of the system. Comments and suggestion for the draft rules are to be sent in by9 am on 24 November to the nominated authority.

The secretary said that auction would be a two set process where blocks would be allotted only to specific end-use plants in the first set and the second set will be for allocation under govt dispensation.

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Swarup hoped to finalise RFP for auction by 22 December and said that the companies bidding for the auction would have to furnish the additional levy imposed by the SC by December 19. He further added that the bids for the 1st set would be due by February 11.

In addition the coal secretary hoped to finalise the technical process of allotment by March 3 and expected the e-auction to be conducted my March 6

Thesecretary said that the govt would try to make sure that no one company would monopolise the auction and may cap the number of blocks one company could bid on

The coal block auction process seeks to keep a lid on the tariffs, it is not a revenue maximization approach, Coal Secretary said.