India to auction three coal blocks; first since Coalgate

Tags: News
India has invited bids for three coal blocks containing reserves of about 499.4 million tonnes, the Coal Ministry said, in its first auction of mining rights following investigations into its earlier practice of allocating them.

The allocation controversy, dubbed "Coalgate", came up in 2012 after an auditor questioned the government's exercise of awarding mining concessions without competitive bidding. The CBI has already launched probes against industrialists and companies.

"The government has initiated an auction of coal blocks by inviting applications for the first time for allocating coal blocks through competitive bidding for specified end-uses," the Coal Ministry said in a statement on Wednesday.

Two of the coal blocks are located in Jharkhand and one in neighbouring West Bengal. The type of coal from the blocks would be used in the steel, cement and sponge iron industries, the statement said.

The ministry said in September that bidders would have to agree to milestones for obtaining environment and forest clearance permits and for developing the blocks.

Many companies that received coal blocks over the past decade had to give them up recently as the government found them slow to develop the blocks.

Difficulties in obtaining environmental approval and securing land for mining have made India the third-largest importer of coal, even though it sits on what BP ranks as the fifth-largest reserve. State-run Coal India is the dominant producer but frequently fails to meet targets.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The NDA government would do well to keep its economic focus in place

    It is as if the worst horrors conjured by liberal secularists about India’s prime minister could be finally coming true.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Shifting sands in the Far East

As was to be expected, Japanese prime minister Shinzo Abe ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Bubbles Sabharwal

Why self-esteem must be your best friend forever

Two negatives do make a positive! Imagine no doubts, no ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture