'More than 74 blocks to be auctioned or allotted in 1st phase'

The government in a day or two will finalise the number of coal blocks to be auctioned or allotted over and above the 74 mines that will be put up for sale in the first lot of bidding on February 11, an official said today
The government had last week announced auctioning of 74 blocks in the first phase, including 42 blocks, which are already into production and 32 which are ready for production.
Now, government is considering auctioning or allotting more than 74 blocks in the first phase. The government wants enough number of coal blocks to be made available for power firms because 74 mines are seen as insufficient for the sector.

"In a day or two the government will decide how many more mines can be auctioned or allotted," Coal Secretary Anil Swarup told PTI.
The government is in the process of finalising the exact number of additional mines on the basis of the nature of the blocks. The final call regarding allotment or auction will be taken in a couple of days, he said.
The allotment will be government entities whereas auction will be for private entities, he added.

"The exact number I don't know, but there will be some more blocks...This is in view of the power sector where we want sufficient blocks for power units," he said.

The auction of the first lot of coal blocks, whose allotments were cancelled by the Supreme Court will start on February 11 and mines will be allotted only to specified end-users.
The apex court had termed the allocation of 204 mines since 1993 as "arbitrary and illegal".
The government had already made it clear that the number of mines a company can bid will be capped to avoid monopoly.
The e-auction of coal blocks will have a two-stage tender process of technical and financial bids.
The e-auction of coal blocks had got the approval from President Pranab Mukherjee, who promulgated an Ordinance in the backdrop of Supreme Court order quashing 204 coal blocks to companies since 1993.

The 74 blocks to be auctioned have a potential to produce 210 million tonnes, including 120 million tonnes by the 32 blocks.
The draft rules say that the Centre may also allot any Schedule 1 coal mine (the cancelled 204 blocks) to a company, which has been awarded a power project based on competitive bid for tariff, on recommendation of the Power Ministry.