Panel to seek cabinet approval for coal auction reserve price method 12/11/2014

Panel to seek cabinet approval for coal auction reserve price method
12/11/2014 10:56
An inter-ministerial panel is likely to seek Cabinet approval for fixing the reserve price for coal auction, said the media report. According to the report, the Cabinet met on November 11, 2014 and decided on methodology for fixing the auction start price for allotting coal blocks whose allotments were quashed by the Supreme Court in September. The apex court had quashed allotment of 204 coal blocks to various companies between 1993 and 2009. Out of these, 37 are running coal mines and another five are ready to produce by April. "The Cabinet will take the final call on fixing methodology for reserve price....," the media report said. The government had in 2012 constituted inter-ministerial panel (IMC) to consider and examine the formulation of methodology for fixing floor/reserve price of coal blocks to be allocated through auction. Based on proposal of consultant Crisil, it had planned allotting coal blocks only to government companies or to power plants with tariff-based bidding, in order to ensure cheaper domestic coal to consumers.