The Government expects to finalise norms for the proposed competitive bidding of coal blocks soon, said the Coal Minister, Mr Sriprakash Jaiswal, on Thursday.

Mr Jaiswal, promoted to the Cabinet rank in Wednesday's reshuffle, said his Ministry is giving final shape to the norms, which would be finalised within a month. The bidding process for new coal blocks, currently being identified, may begin from April, he added.

Parliament in August last year had passed the Mines and Minerals Development and Regulation Amendment Bill-2010, which paved the way for introduction of auction through competitive bidding for allocation of coal blocks for private companies for captive use. Hitherto, the coal block allocation was done by a Government screening panel that also included representatives from coal bearing States.

Mr Jaiswal also hinted at a likely increase in coal prices after July. “Coal India is set to finalise the next wage revision by July. So the quantum of coal price hike will be dependent on the burden the wage hike on the company,” Mr Jaiswal said.

Fixing prices

Coal India, which accounts for 80 per cent of the country's coal output, fixes the coal price in consultation with the Coal Ministry.

Mr Jaiswal also said he would request the proposed Group of Ministers, being set up to resolve the environment related issues affecting the coal sector, to come up with an early solution.

The Cabinet has recently agreed to set up a GoM to frame guidelines for mining in restricted forest areas or “no-go” areas. The Environment Ministry's refusal to grant permission for mining in no-go areas is seen impacting the country's coal output thereby resulting in a widening demand-supply gap.

Mr Jaiswal said rising global coal prices could impact the Indian imports. “If the international price increases, it might have a possible impact on imports,” Mr Jaiswal said.

Bill for Regulator

Global prices of thermal have surged in the past few weeks due to impact of floods in Australia. Prices of coal bound for India has seen a 30 to 50 per cent jump in three months.

The Minister said the Coal Regulator Bill would be introduced in the forthcoming Budget session, which is expected to start from February 21. The Coal Regulator would seek to ensure there is a level playing field to all stakeholders.

However, Mr Jaiswal clarified that the coal regulator will not have any role in fixing the prices of the commodity.

“Coal India and Coal Ministry in consultation with the Finance Ministry will fix the coal prices,” he added.

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