Embroiled in controversy over the allocation of mines, the Coal Ministry has charted out a new set of guidelines to evaluate applications from government firms for assessing eligibility for taking part in competitive bidding.
Demand-supply deficit, plant location and progress made in earlier awarded block, mining capability and the company's financials would be judged to determine their eligibility for participating in the auctioning of coal mines, a Coal Ministry notification today said.
The eligibility would be judged on a parameter of 20 marks in which the highest weightage of seven points has been given to demand-supply gap of the unit followed by five each on its financials and progress made in the earlier awarded block. The remaining three is for its mining capability.
"As far as the marks with respect to demand-supply gap ...This will not be applicable for central PSUs i.E Ministry of Power, will provide the deficit position based on Central Electricity Authority derived norms to be confirmed by Ministry of Power/Planning Commission, as the case may be," it said.
"Demand-supply deficit of the state PSUs has to be verified by the competent authority of the state government. If required, this may be referred to Planning Commission for their comments," the notification added.
After carrying out the scrutiny, a task force constituted by Coal India arm CMPDIL will prepare a comprehensive status incorporating details, coal block-wise and applicant-wise, to be submitted to the Coal Ministry.
Coal Ministry will then seek various stakeholders' views including state governments and concerned ministries.
CMPDIL's observations would again be reviewed by the Coal Ministry which would place it for reviewing before a technical committee, to be constituted with members drawn from Ministry of Power and Steel, Central Electricity Authority, DIPP and Planning Commission.
The proposed technical committee's recommendations would then be placed before an Inter Ministerial Panel, headed by Coal Secretary, for its final decision, the notification said.
The Coal Ministry's move is understood to have followed government auditor CAG's report estimating a whopping Rs 1.86 lakh crore potential loss to the exchequer due to allotment of blocks to 57 private firms without auction.
