New Delhi: The government plans to introduce competitive bidding for allocation of coal blocks for captive use by next March, a move which is likely to increase coal production in the country.It is likely to push the amendment bill to the Mines and Minerals (Development and Regulation), or MMDR Act, 1957, in the winter session of Parliament.
"In the current system, a lot of non-serious players managed to get mines which they do not plan to develop. We want only serious players to get the coal mines and that will happen only when someone has to fulfil all the requirements to win the bid," Sriprakash Jaiswal said. The policy for competitive bidding of captive coal blocks will come in the next 2-4 months that is within this fiscal, the minister said at ICC India Energy Summit here.
The amendment will allow the government to introduce some structural reforms
in the mining sector and bring in a regulator to overcome delays in the current system that, in turn, will attract private investment in a bigger way. "Competitive bidding will not only bring more transparency in the system but also improve government's revenues", Jaiswal said.
There are, however, differences between the steel and mines ministries on amending the MMDR Act over retention of exclusive mining rights. India has so far allocated 201 captive coal blocks with a potential to produce 47 billion tonnes, of which 25 blocks are operational.


