Millennium Post

Panel to seek Cabinet nod for coal auction reserve price method

An inter-ministerial panel on Tuesday decided the methodology for fixing the reserve price for coal auction and will seek the Cabinet approval for the same. The committee met and decided on methodology for fixing the the auction start price or the reserve price for allotting coal blocks whose allotments were quashed by the Supreme Court in September, sources close to the development said.

The panel comprises secretaries of finance, power, steel, law, mines, petroleum, industrial policy and promotion and coal ministries.

'The Cabinet will take the final call on fixing methodology for reserve price....,' the source 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 recommendations of consultant Crisil, it had proposed allotting coal blocks only to government companies or to power plants with tariff-based bidding, to ensure that the benefit of cheaper domestic coal is passed on to consumers.


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