Tweak in policy helps attract 'realistic' bids for coal blocks: Experts

Revenue-sharing model drove interest among larger firms, say experts

Coal user industries were able to offer realistic bids in the coal auctions last week because the government had changed the rules of the auction, say industry experts, analysts and government officials. This could be a valuable lesson for the government, the experts added, as the rules governing the auction of natural resources to companies need not remain fixed.
 

“Despite the global projected over-supply of coal, the domestic industry found there was value in bidding for the mines,” said Ujjwal Chatterjee, former chief operating officer, Tata Sponge.
 

Chatterjee added that the interest was triggered by the flexible revenue-share model that