Govt extends deadline for PSUs to apply for coal blocks

Central and state PSUs now have time till 8 February to submit their applications

The coal ministry has extended the 30 January deadline for government-owned companies to apply for the 17 coal blocks to be allocated under the new bidding regime.

Central and state Public Sector Undertakings (PSUs) now have time till 8 February to submit their applications.

The coal ministry said the deadline has been extended on the request of state government companies.

“It is clarified that, under no circumstances, any further extension will be given for the submission of applications after 8 February, 2013,” the ministry said.

The government wants to allocate 54 blocks to public and private companies under the auction by Competitive Bidding of Coal Mines Rules notified in February 2012.

 

PSUs and private firms setting up power projects won on tariff-based bidding have been exempted from this bidding.

In the first phase, the coal ministry has invited applications from government companies for allocation of 17 blocks.

However, not a single of the 17 blocks with 8.5 billion tonne (BT) reserves on offer currently is explored. This, sources said, has led to uncertainty on future cash flow accruing from the reserves. So far, not a single company has submitted an application for block allocation. The 17 blocks currently on offer include 14 acreages earmarked for companies setting up end-use plants in the power sector and three blocks for allocation to mining companies.

The coal ministry’s plan is to ask the selected companies to carry out exploration themselves owing to the dismal pace of exploration by Coal India subsidiary Central Mine Planning and Design Institute (CMPDI). After this, the government would calculate reserve prices to be paid by companies by linking it either to global coal prices or using Coal India prices as benchmarks.