Business

Policy paper on mechanism for granting coal linkages by June: Swarup

Amid reports that government is now mulling auctioning coal linkages through the competitive bidding route, Union coal secretary Anil Swarup said government would come up with a policy paper on mechanism of granting coal linkages by June 30.

“SBI Caps has been mandated to suggest on this and a policy paper will be ready on this by June 30,” he said.

“Don’t call it coal linkage auction already. Fundamentally we felt that after the coal block auction, there is need to bring in transparency in other activities of coal ministry including granting of coal linkages. How it will happen will be determined in the course of next couple of month,” he noted.

Meanwhile, speaking the coal block auction, he said, auctions and allotments of 67 coal block so far has unlocked a total value of nearly Rs 4,00,000 crore.

“Out of 67 blocks auctioned or allotted total benefit of Rs 3,35,000 crore is for states and another Rs 69,000 crore will be unlocked by way of tariff benefit to the consumers,” coal secretary Anil Swarup said here today at Coal Consumers’ Association of India interactive session. So far, 29 blocks had been auctioned and another 38 had been allotted to the state entities.

Meanwhile, Swarup noted that 204 blocks that would be allotted by March 2016, which has a peak capacity of 800-900 million tonne, will be able to deliver 500 million tonne of coal production by 2020 to meet the 1.5 billion coal production target by the country by that time.