Captive coal blocks to be allocated through auction: Jaiswal

Captive coal blocks would now be allocated through auction to maintain transparency and to fetch better price, Coal Minister Sriprakash Jaiswal today said.

"There will be some changes in the policy for allocation of captive coal blocks to maintain transparency and to fetch better price," he told reporters here after reviewing the performance of Coal India (CIL).

The government would amend the Mines and Minerals (Development and Regulation) Act, 1957, to effect changes in the policy, he said.

At present allocation of coal blocks is done by a screening committee.

The government has allocated 190 captive coal blocks to various companies so far but 90 per cent of them remained untapped. These blocks have a total reserve of 40 billion tonne of coal, he said, adding only serious players should come for the bid.

On hike in coal price, Jaiswal said currently there was no proposal to increase coal price. "Our target is to increase coal production. As of today there is no proposal for any price hike for coal. It will be done when it is necessary," he said.

CIL Chairman Partha S Bhattacharyya had earlier said price hike was necessary in view of rise in salaries and wages of workers and executives and to maintain the firm's growth.