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Government looks to award coal blocks on production or revenue sharing model

Coal News - Published on Wed, 27 Dec 2017

Image Source: ET
Economic Times reported that system of coalblocks allocation could undergo an overhaul, with New Delhi leaning towards the oil-and-gas industry model that involves sharing production or revenue instead of the existing practice of auctions. The coal ministry has set up an expert committee to examine challenges facing the current bidding system and to suggest changes to the process for conducting future auctions of coal mines, officials familiar with the development told ET.

The expert panel, with representations from Niti Ayog, DIPP and coal ministry, will examine the present bid system, study its challenges “and compare its merits and demerits vis-à-vis the production/revenue-sharing model,” an official said.

The panel will also suggest changes in the bid process in its report to be submitted within a month. The formation of the committee follows an advisory by a government department to the coal ministry, pointing out the annulment of the last two tranches of coal mine auctions due to tepid response from the industry. The fourth and fifth rounds of coal-mine auctions to non-power firms have been shelved as companies were not too keen.

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Posted By : Nanda Koijam on Wed, 27 Dec 2017
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