The Hindu Business Line : CBM blocks: Expert panel to meet today

Block awards
Fresh ECOS meeting is likely to be convened by the Cabinet Secretary.
The Government has been maintaining that its award process is most transparent and can stand legal scrutiny.

New Delhi , Sept. 17

A decision on the award of 10 coal bed methane (CBM) blocks may be round the corner, with the Empowered Committee of Secretaries (ECOS) expected to meet on Monday.

The Anil Ambani-led Reliance Natural Resources Ltd (RNRL), which had bid for all the 10 blocks, along with an international consortium, had raised objections over the methodology of selecting the winners.

Indications are that the fresh ECOS meeting is likely to be convened by the Cabinet Secretary. The awarding of the blocks was taken up at the Cabinet Committee on Economic Affairs (CCEA) on August 31, when it was decided to defer a decision and instead refer the issue to an ECOSfor further consideration on technical grounds.

`Most transparent'

Officials had then said that the decision was deferred as the empowered panel should essentially have four secretaries, but was attended by only one — the Petroleum Secretary — and two joint secretaries.

Since this is the committee that vets the bids, the Government wanted the committee in full strength to decide on the successful bidders. It consists of the secretaries of the petroleum, coal, finance and law Ministries.

The Petroleum Ministry has been maintaining that its award process is most transparent and can stand legal scrutiny. While the Anil Ambani Group has been backing its claims with legal opinions from eminent jurists, the Ministry is backing its arguments with several Supreme Court rulings upholding the Government award process.

Bidders

The Government had invited bids to auction 10 blocks under the third round of CBM policy earlier this year. All blocks received multiple bids, with 26 companies bidding, including eight foreign firms. RNRL, which was expected to get four blocks, said that it should be getting six.

The consortium of RNRL, Reliance Energy Ltd and Geopetrol Resources of France is likely to get two blocks in Barmer district of Rajasthan, and one each in Andhra Pradesh (Kothagudem) and Madhya Pradesh (Sohagpur). Apart from the RNRL consortium, Arrow Energy-GAIL (India)-EIG Infrastructure Group-Tata Power is expected to get two blocks and Arrow Energy-GAIL-EIG may get one. Coal Gas Mart-Adinath Exim Resources-Deep Industries, Coal Gas-Deep Industries and British Petroleum are expected to get one block each.