The government has approved the bill for auctioning of coal blocks for captive use by industries like steel and power last week, Coal Minister Sriprakash Jaiswal said today.
"Cabinet cleared the bill for auctioning of coal blocks for captive use last week," Jaiswal told PTI at the sidelines of PTI Diamond Jubilee event here.
The bill is now likely to be placed in the upcoming Budget session of Parliament for amending some of the clauses of the Mines and Minerals Development and Regulation Act, 1957, (MMDR Act) paving way for competitive bidding. The bill has been pending for over two years now.
The Upper House Of Parliament — Rajya Sabha — had sent it to the Standing Committee on Coal and Steel for further consideration.
The MMDR Act governs the process of exploration, mining and allotment of coal and lignite blocks.
Currently, the companies are granted captive coal blocks through a screening committee route, which examines the short-term and long-term requirements of the consuming firms.
Auctioning of coal blocks is expected to expedite the process of allocation of mining resources to the consuming firms and encourage more private investment in the sector.
State-run firms, however, can get coal blocks for captive use through both auctioning as well as existing route.
Private firms like ArcelorMittal, JSW Steel, JSPL on other hand would have to queue up to secure such coal blocks through the auctioning process.