Power, Steel ministries consult Crisil on coal reserve price

PTI New Delhi | Updated on October 29, 2012 Published on October 29, 2012

Power and Steel ministries are holding consultations with Crisil on its draft report on fixing reserve prices for 54 coal blocks to be allocated through competitive bidding route.

“Some of the ministries like Steel and Power and Planning Commission are holding consultations with Crisil on its draft report on coal blocks,” an official in the Coal Ministry said.

“After consultations, the ministries would send in writing their opinion to the Coal Ministry by month-end,” the official said.

The government appointed panel, which had submitted its draft report to the Coal Ministry recently, has suggested that the valuation of coal reserves to be put up for bidding should be linked to international prices.

Among its various recommendations, Crisil had also suggested that in case of blocks for power sector and other public sector companies, the government should provide discount as otherwise it would lead to increase in electricity tariff.

The government is likely to begin the process of allocating coal blocks through competitive bidding route by the year-end.

The Coal Ministry has identified 54 new coal blocks for auction to the bidders for captive use in different sectors — 16 for power, 12 for steel and 12 for government firms, among other sectors.

Crisil had emerged as the lowest financial bidder for the Coal Ministry’s contract to prepare the methodology. It provides ratings, research, and risk and policy advisory services.

Recently, the Comptroller and Auditor General had estimated that financial impact of the benefit to the private allottees on account of allotment of 57 coal mines without auction was about Rs 1.86 lakh crore.

Published on October 29, 2012
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