The Coal Ministry will soon move a draft Cabinet note for auctioning linkages for the dry fuel to the power sector.
This assumes significance in the backdrop of the government's commitment to provide affordable round-the-clock electricity to all.
"The Coal Ministry will soon seek suggestions of various ministries including power on the draft Cabinet Committee on Economic Affairs (CCEA) note for auction of coal linkages to the power plants," a source said.
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Last month, CCEA had approved allocation of coal linkages for non-regulated sector only through auction. Sectors included were cement, steel/sponge iron, aluminium, and others (excluding fertiliser, urea).
Coal and Power Minister Piyush Goyal has said that the framework attempts to make coal available in a fair manner to end-users.
"Proposed auction methodology leads to price through a market mechanism; it does not seek to maximise revenue", the minister had said, adding, "it ensures that all market participants of non-regulated sector have a fair chance to coal linkage, irrespective of size".
Coal Secretary Anil Swarup had said that coal linkages for 24 million tonnes will go under the hammer in the first year.
Till now, Standing Linkage Committee has been deciding on allocation of long-term and short-term linkages for the sectors, including power and steel.
The government aims to provide 24x7 power by 2019 by creating cost-effective infrastructure which will be sustainable and inclusive of clean energy solutions.
The government has earlier directed nominated authority
to conduct the allotment of 16 mines for sale of coal, the secretary said.
Out of these 16 coal mines, eight mines are identified for allotment to state government companies of coal bearing host states and the remaining mines are identified for allotment to state government companies of states other than host states, Swarup added.
While the allotment process of eight mines identified for host states was initiated vide notice inviting application on April 21 but due to unavoidable circumstances, the schedule for allotment process was deferred, he said.
As per the revised schedule, the last date for submission of application is July 27 and the results shall be published on August 4, 2016.
The coal secretary further said that the notice inviting application for allotment of eight mines identified for states other than host states will be issued on June 23, 206. Last date of submission of application is August 8 and the results would be published on August 19.
The allotment of these 16 coal mines is expected to result in incremental annual coal production of over 40 million tonnes. It is expected that incremental coal produced from such coal mines would cater to the unmet demand of the coal in the country especially of medium, small and micro industries and bridge the gap between the demand and supply considerably.
"We have so far taken eight plus eight mines. In the next two months we would be able to complete this exercise and as in the past we would be able to do it within the timeframe," the secretary said.
Swarup further said that NTPC, Coal India and Indian Oil, the three PSUs, have come together and incorporated a joint venture company called 'Hindustan Avram and Rasayan Ltd, to revive sick fertiliser plants at Sindri, Gorakhpur and Baruni.
The commercial operation of these plants is expected to begin by December 2020, he said adding the commercial operation of plants is expected to be of worth around Rs 20,000 crore.
"The JVC has started operations on the ground on a fast track mode," he said adding that GAIL is committed to completed the gas pipeline to Haldia by June, 2020.
