India: The Indian government plans to hasten the coal block reallocation to the private sector through auctions, although the new Coal Mines (Special Provisions) Ordinance skips the issue of a regulator. According to government officials, 74 producing blocks would be put up for online auction by December 2014 and a regulator will not be not required.
"The coal blocks, which would be put for e-auction, are all for end-usage in power, cement and iron production," said a government official. "It's the commercial mining by private companies that needs to be put under vigilance and that would be done later after the first batch of auction commences."
Valuation of coal reserves and assets in the 74 blocks will be done by a committee under Pratyush Sinha, former chief vigilance commissioner. The transparent auction process in December 2014 will start with a pool of 42 operational and 32 nearing-production mines.
Through the ordinance, the government has added enabling provisions in the Coal Mines (Nationalisation) (CMN) Act, 1973 and the Mines and Minerals (Development and Regulation) Act, 1957, to allow commercial mining in the country.
"The priority is to make available coal to the sectors in want of fuel. Undoubtedly, once the sector opens up, a regulator would be needed. The powers and constitution of the regulatory body is yet to be dwelt upon and it would be for the non-operational cancelled coal blocks," said a government official.
