Wednesday, August 11, 2010

Open Bidding of Coal Blocks to Bring Greater Transparency
  
With a view to bringing in greater transparency and objectivity in the process of allocation of coal blocks, the Mines and Minerals (Development and Regulation) Amendment Bill, 2008 which was introduced in the Rajya Sabha on 17.10.2008, seeks to adopt auctioning of coal and lignite blocks for captive use through competitive bidding as the selection process in lieu of dispensation through the Screening Committee route. This was stated by Minister of State for Coal, Shri Sriprakash Jaiswal in reply to a question in Lok Sabha Today.

He said that the Government also proposes to set up an independent regulator for coal sector, which would require appropriate legislation to be passed by the Parliament. Appointment of an independent regulator for coal sector would result in more optimal development and conservation of coal resources, more effective regulation, adoption of best mining practices, rational pricing, better distribution, evolution of a more competitive market and would also help in creating a level playing field for new entrants in the coal sector.

The Central Government also decided to amend the Coal Mines (Nationalization) Act, 1973, to allow Indian companies, both in the public and private sector, to mine coal in the country without the existing restriction of captive mining and to be engaged in exploration of coal in the country. Accordingly a Bill, namely the Coal Mines (Nationalization) Amendment Bill, 2000, was introduced in the Rajya Sabha on 24.04.2000. The Bill was referred to the Standing Committee, which has already submitted its report. Due to concerns voiced by the trade unions, the Bill could not be moved in the Parliament so far.

Now the Government has constituted a new Group of Ministers (GOM) in August, 2009, to examine the matter further.

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