CoalMin calls meeting of states to ensure transparent block allocation

After it decided to allocate coal blocks through competitive bidding,the ministry had circulated a proposal seeking the views of the coal-bearing states on the same. On receipt of the views of certain states,the ministry prepared the Bill,which was introduced in the Rajya Sabha and subsequently referred to the Parliamentary Standing Committee on Coal and Steel for its detailed examination. The panel in one of its recommendations had suggested commencing interactions with the states and stakeholders on the legislation. At present,a screening committee under the ministry approves allotment of blocks for captive use to public and private companies

A Group of Ministers chaired by former home minister Shivraj Patil had already cleared the proposal for competitive bidding-based allocation of coal blocks. “With the demand for coal rising sharply,the number of applicants from the public and private sector too has gone up,making the process of allocation difficult and vulnerable to criticism on the transparency and objectivity fronts,he said. In some cases there were more than 100 applicants for the same coal blocks,sources said. The move was aimed at encouraging the power and steel majors to bid for the blocks having proven coal reserves and extracting coal to meet their requirements. The policy is expected to draw only serious players and ensure richer coffers for the state. However,state-run companies will understandably have an edge over their private counterparts as they could also be given coal blocks outside the bidding process.