RAIPUR: The excessive delay in commencing the excavation process from coal mines allocated through the commercial auctions by the Centre has raised concerns causing disquiet among the successful bidders.
The sixth tranche of such an auction for coal mines launched in November last year got an excellent response (bids received for 32 mines) as the reforms in the coal sector looked promising. However, the delay is said to be causing a loss of around Rs 40 crore per month to the state exchequer in terms of statutory and revenue share payments from each yet-to-start mining auctioned coal mine. Besides, it may lead to delay in supply of coal to the thermal plants, the bidders said.
Various investor organisations declared as successful bidders in the commercial coal block auction find themselves in a fix even after the coal block order had been vested to them. The reason is the area limit for allocated coal blocks. The limit is specified under Section 6 (1) of the Mines and Minerals (Development and Regulation) Act, provided the Centre and the state are convinced to relax the limit.
