Auction of coal blocks: Bill to amend Act in Budget session
Press Trust of India / New Delhi Feb 01, 2010, 18:25 IST
Paving the way for auctioning of coal blocks for captive use by industries like power and steel, the government is believed to have decided to introduce the bill for amending the mines and minerals development Act in the Budget session of Parliament.
"The bill for competitive bidding of coal blocks for the captive use has been cleared by the Union Cabinet last week. Now, the bill will be presented in the Budget session of Parliament this month to amend certain clauses of the Mines and Minerals Development and Regulation Act, 1957 (MMDRA)," a senior government official said.
The companies now are granted captive coal blocks through a screening committee route, which examines the short-term and long-term requirements of the consuming firms.
Auctioning of coal blocks is expected to expedite the process of allocation of mining resources to the consuming firms and encourage more private investment in the sector.
The MMDR Act governs the process of exploration, mining and allotment of coal and lignite blocks. The bill to amend the act was pending for over two years now. The Upper House had sent it to the Standing Committee on Coal and Steel for further consideration.
State entities would, however, can get coal blocks for captive use through both auctioning and the existing route.
Private firms like ArcelorMittal, JSW Steel, JSPL on other hand would have to queue up to secure coal blocks through the auctioning process.
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