ARCHIVE

India to auction coal blocks

IN RESPONSE to a mismanagement scandal in the Indian coal sector, the government will begin publi...

Justin Niessner
India to auction coal blocks

The move is reportedly intended to increase transparency and bolster private investment in an industry which has experienced a recent slowdown in domestic production.

Coal Minister Sriprakash Jaiswal told the Wall Street Journal that New Delhi would scrap the current system which allows the government to hand out coal licenses without open auctioning.

“Auctions will definitely make the allocation process more transparent and expeditious,” he said on the newspaper’s website.

“Coal is a valuable resource now and a price tag should be put to it. Auctions will help us in discovering its real value in monetary terms.”

The overhaul in the coal block allocation system comes after a government audit leaked last month suggested state-owned miner Coal India lost $US206 billion by allocating coal blocks instead of auctioning them off.

The Confederation of Indian Industry subsequently called for the introduction of competitive bidding as a means of ensuring viable and sustainable development of the country’s power sector.

Forthcoming coal block auctions, however, may differ in procedure depending on the nature of the interested industry.

Citing an anonymous coal ministry source, The Indian Express, said cement and steel companies would be able to bid on licenses in open auctions – but power companies would participate through “competitive tariff-based bidding”

The Express said the government hoped to keep electricity prices low by using a tariff-based bidding method for power companies.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Monthly Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Magazine Intelligence Exploration Report 2024 (feat. Opaxe data)

A comprehensive review of exploration trends and technologies, highlighting the best intercepts and discoveries and the latest initial resource estimates.

editions

Mining Magazine Intelligence Future Fleets Report 2024

The report paints a picture of the equipment landscape and includes detailed profiles of mines that are employing these fleets

editions

Mining Magazine Intelligence Digitalisation Report 2023

An in-depth review of operations that use digitalisation technology to drive improvements across all areas of mining production