Coal auctions also yield power tariff concessions: Goyal (Lead, correcting dateline)

The transparent process of coal auctions, besides garnering around Rs.200,000 crore revenue for the states, also yielded power tariff concessions for consumers, testifying to the auctions' success, Power and Coal Minister Piyush Goyal said on Thursday.

"A success was made of the biggest crisis in the sector following the cancellation of 204 blocks by the Supreme Court in September last," Goyal said here at the conference of power, renewable energy and mines ministers of states and union territories in Assam's main city.

Apart from the revenue of nearly Rs.200,000 crore from the auctions, tariff concessions to the tune of Rs.69,310 crore to consumers would be achieved from 12 blocks auctioned for the power sector, he said.

The coal blocks reserved for the regulated power sector were auctioned through reverse bidding, by which the authority sets a ceiling price and bidders have to bid lower than that. The lowest bidder wins the auction.

An estimated revenue of Rs.1,71,961 crore was likely to be raised from 29 coal mines already auctioned, Goyal said.

Apart from this, royalty of Rs.20,620 crore and upfront payment of Rs.930 crore accrues to the states, the minister added.

The coal ministry is identifying 15-20 blocks for the next - third - round of auction, Goyal said last month.