Surge observed in the number of companies bidding for coal blocks

The bid documents can be downloaded till January 29th and attract a fees of Rs. 5 lakh per download.

Jan 28, 2015 11:01 IST India Infoline News Service

As per news reports, there has been a surge in the number of companies bidding for the coal blocks to be auctioned by the government. Number of such companies has risen from 100 to 260 within a week, with 180 companies interested in mines that are already in production and another 80 interested in mines that are ready to produce but where production has not started yet.

The bid documents can be downloaded till January 29th and attract a fees of Rs. 5 lakh per download.

There are 24 coal blocks on the auction which are already in production, out of which six blocks are to be auctioned to the power sector while the rest will go to companies which require blocks either for iron and steel, cement or captive power generation.

The other 24 coal blocks are 'ready to produce', out of which seven are for power sector while the rest are for iron and steel, cement and captive power plants.

Media reports suggest that the government plans to hold reverse auction, with a ceiling price that minimises end-consumer tariffs for the regulated power sector and forward auction (highest bid wins) with a minimum floor price of `150 per tonne for non-regulated sectors such as steel and cement and including captive power plants. 

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