Government is now mulling auctioning coal linkages through the competitive bidding route and has also constituted an inter-ministerial panel to look into various models to implement it, a move aimed at bringing greater transparency in the allotment of linkages.
The development comes at a time when the allocation of coal blocks through auction route is due next month.
"The government is contemplating to introduce auctioning of coal linkages/LoAs (Letter of Assurances) through competitive bidding as the selection process," an official close to the development said.
The official further said that "to consider various models and to recommend the optimal structure that would meet the requirements of all the stakeholders, it has been decided to constitute an Inter-Ministerial Committee (IMC) under the chairmanship of Additional Secretary, Coal."
The 16-member panel will have representatives from the the ministries like Power, Railways, Steel and Legal. It will also have a member from NITI Ayog and Chairman and Managing Directors (CMDs) of Coal India Ltd, Singareni Collieries Company Ltd and CMPDIL, among others.
"The Terms of reference of the IMC would be to consider and examine various structures and implementation models for implementing the competitive bidding for auction of coal linkages/LoAs and to recommend the optimal structure that would meet the requirement of all the stakeholders," the official said.
The official further said the constitution of the IMC has already been approved by the Coal and Power Minister Piyush Goyal.
Till now, Standing Linkage Committee has been deciding on allocation of long-term and short-term linkages for the sectors, including power and steel.
