Express News Service
RAIPUR: The excessive delay in commencing the excavation process from coal mines allocated through the commercial auctions by the Centre has raised concerns causing disquiet among the successful bidders.The sixth tranche of such an auction for coal mines launched in November last year got an excellent response (bids received for 32 mines) as the reforms in the coal sector looked promising. However, the delay is said to be causing a loss of around Rs 40 crore per month to the state exchequer in terms of statutory and revenue share payments from each yet-to-start mining auctioned coal mine. Besides, it may lead to delay in supply of coal to the thermal plants, the bidders said.
Various investor organisations declared as successful bidders in the commercial coal block auction find themselves in a fix even after the coal block order had been vested to them. The reason is the area limit for allocated coal blocks. The limit is specified under Section 6 (1) of the Mines and Minerals (Development and Regulation) Act, provided the Centre and the state are convinced to relax the limit.
According to these firms, the Centre as part of the coal block bidding process should release vesting orders along with relaxation in the given limits, as all blocks are being granted on commercial terms for which the bidder paid premiums in addition to royalty and other taxes. “Any restriction, if applicable, either should have been done before the bidding process and or it should have asked the bidder to take approval before participating in the commercial auctions. Such situations are distressing,” said an executive president awaiting a mining lease for his firm.
The Centre claims to work on a vision to secure coal availability to meet the demands of various sectors of the economy, giving the highest priority to ‘ease of doing business.’ But some of the well-known firms are worried as the coal ministry is yet to decide to offer relaxation on the official minutes submitted from Chhattisgarh, said a government official. Some organisations approached the coal ministry with the appeal but were asked to proceed via the state government that can submit in writing for consideration on relaxation with justification for the successful bidders. Follow channel on WhatsApp
RAIPUR: The excessive delay in commencing the excavation process from coal mines allocated through the commercial auctions by the Centre has raised concerns causing disquiet among the successful bidders.
The sixth tranche of such an auction for coal mines launched in November last year got an excellent response (bids received for 32 mines) as the reforms in the coal sector looked promising. However, the delay is said to be causing a loss of around Rs 40 crore per month to the state exchequer in terms of statutory and revenue share payments from each yet-to-start mining auctioned coal mine. Besides, it may lead to delay in supply of coal to the thermal plants, the bidders said.
Various investor organisations declared as successful bidders in the commercial coal block auction find themselves in a fix even after the coal block order had been vested to them. The reason is the area limit for allocated coal blocks. The limit is specified under Section 6 (1) of the Mines and Minerals (Development and Regulation) Act, provided the Centre and the state are convinced to relax the limit.
According to these firms, the Centre as part of the coal block bidding process should release vesting orders along with relaxation in the given limits, as all blocks are being granted on commercial terms for which the bidder paid premiums in addition to royalty and other taxes. “Any restriction, if applicable, either should have been done before the bidding process and or it should have asked the bidder to take approval before participating in the commercial auctions. Such situations are distressing,” said an executive president awaiting a mining lease for his firm.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
The Centre claims to work on a vision to secure coal availability to meet the demands of various sectors of the economy, giving the highest priority to ‘ease of doing business.’ But some of the well-known firms are worried as the coal ministry is yet to decide to offer relaxation on the official minutes submitted from Chhattisgarh, said a government official. Some organisations approached the coal ministry with the appeal but were asked to proceed via the state government that can submit in writing for consideration on relaxation with justification for the successful bidders. Follow channel on WhatsApp
