The Government plans to kick-start the next phase of coal blocks auction before the end of this month, wherein around 15 to 20 reserves are likely to be offered for bidding. According to sources privy to the development, the auction process will involve blocks, which are under production as well as those which are ready to produce.
A total of 29 coal blocks were auctioned off by the Government last month - which involved both under production as well as ready for production reserves - while 38 blocks were directly allotted to public sector undertakings (PSUs). Overall therefore, 67 blocks have been accounted for by the Centre, out of the 110 reserves which were earmarked with specific end-use for auction and allotment.
Out of the remaining 43 blocks, around 15 to 20 blocks are likely to be put up for bidding within a couple of weeks, as a final decision will be taken by the Centre on this soon, sources informed The Pioneer.
The Government had placed blocks which are under production in Schedule - II, while reserves which are yet to start production were put under Schedule - III. All the 204 blocks which had been cancelled by the Supreme Court in October 2014, were placed in Schedule - I.
Initially the plan was to auction off 42 blocks under Schedule - II and 32 reserves under Schedule - III. However, later owing to various technical as well as legal reasons, the list was pruned down to 23 blocks each in both the schedules. Out of this also, only 29 blocks could be auctioned, but the Government managed to garner close to Rs2 lakh crore through the proceeds. This sum will go to all mineral rich States where the blocks are located, mainly Jharkhand and Chhattisgarh.
Sources further said that with the successful passage of Coal Mines (Special Provisions) Bill 2015 during the ongoing Budget session, the auction process is unlikely to face any problems, though there are still several cases pending in various courts as many companies have challenged the legislation.
According to the provisions of the Bill, the Centre has the power to classify mines identified from Schedule I coal mines as earmarked for a class of specified end-uses. Also the allocation is to be made through auction to a company or their Joint Venture (JV).
In case of a Government Company or their JV, allotment may be made without auction, says the Bill. Further there shall be no end use restrictions on the eligibility to participate in the auction, other than for Schedule II & III coal mines.
Also the proceeds of auction are to be received by the Nominated Authority and disbursed to respective states. The Nominated Authority has been appointed by the Government for overseeing the auction process.