Apply value criteria universally to all 42 coal blocks: Panel

Suggests services of panel of senior valuers from FinMin and officer from Indian Audit and Accounts Services be taken

The pattern adopted to determine the value of 42 operational mines, which were recently deallocated by the Supreme Court, should be universally applied to all the blocks, a panel has said.

It was decided at the recent meeting of the panel to seek experts from the office of the CAG on the issue.

Besides, it said the assistance of different experts like cost advisor from Indian Cost Accounting Services should be obtained to determine the quantum of compensation with regard to land and mine infrastructure of 42 coal mines.

It also suggested that services of panel of senior valuers from the Finance Ministry and officer from Indian Audit and Accounts Services may be taken, as per the record note of discussions at the panel's first meeting earlier this month.

The panel, set up for valuation and assessment of these operating coal blocks, is chaired by former Central Vigilance Commissioner Pratyush Sinha.

Sinha suggested that "the number/figures arrived at after valuation of these 42 coal mines may be contested by the prior allottees as well as the public. Thus, due diligence has to be done while arriving at the final figures".

He further said that the criteria adopted to determine the value of coal mines should be universally applicable to all the 42 coal mines.

The Supreme Court recently cancelled 204 coal blocks allocated to various government and private companies since 1993.

The coal blocks are to be allotted/auctioned to the government/private companies under the Coal Mines (Special Provisions) Ordinance, 2014 promulgated on October 21 to provide for allocation of coal mines and vesting of the right, title and interest in and over the land and mine infrastructure.

The committee was formed to assess the value of assets to be paid for acquisition of 42 running coal mines as well as to assess liabilities.

The Coal Ministry has already issued letters to all the 204 prior allottees seeking detailed information on the blocks with regard to investments made in the mining infrastructure along with the supporting documents.