New methodology for coal block auction likely within a month

The new methodology for auction of non-operating coal blocks which were cancelled by the Supreme Court is likely to be finalised within a month by the advisory group headed by Suresh Prabhu.
"For the non-operating coal blocks the proposed auction methodology is under consideration of an Advisory Group set up under the Chairmanship of Suresh Prabhu.... The auction methodology will be finalised within a month," a source close to the development said.
The source further said that a detailed presentation has be made before the Advisory Group and their recommendations are awaited.
The Coal Ministry had in a communique said the policy of coal mines auction and methodology was being revisited under the direction of Advisory Group headed by Prabhu.

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," it said.

"The ministry is awaiting their recommendations," it said.
The ministry also said 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.