Coal mines auction policy and methodology being revisited

The policy of coal mines auction and methodology is being revisited under the direction of Advisory Council headed by Suresh Prabhu.
The Coal Ministry which is awaiting the recommendations of the council will finalise the policy with changes within a month, the coal ministry said in its latest communique to Coal and Power Minister Piyush Goyal on the future course of action following the Supreme court's judgement on coal mines.
The apex court had last month quashed the allocation of 214 coal blocks allotted to various companies since 1993.
"The auction policy and methodology earlier approved by the CCEA (Cabinet Committee on Economic Affairs) is being revisited under the guidance of the Advisory Council headed by Suresh Prabhu," the communique said.

"The ministry is awaiting their recommendations and finalise the auction policy/methodology with modifications within a period of one month," it said.
The ministry also informed the minister that a there is a proposal to form an Inter-Ministerial Committee (IMC) under the chairmanship of Additional Secretary, Coal to explore all options on the way forward in light of the judgement of the Supreme Court.

The Ministry said that the IMC may consist of the ministries of power, steel, law and Department of Industrial Policy and Promotion.
The Cabinet had in September last year approved the methodology for auctioning coal blocks, providing for upfront and production-linked payments and benchmarking of coal sale prices.

The erstwhile UPA government had in February issued notice inviting applications, offering three coal blocks for mining to companies engaged in production of steel, cement and sponge iron through competitive bidding.
However, the government later cancelled the auction, stating issues related to certain clearances need to be "revisited".
The former UPA government had drawn flak for delaying auction.