Relaxation to Steel Companies

The Minister of State for Mines, Steel and Labour and Employment, Shri Vishnu Deo Sai has said that to make the process of allocation of Coal blocks demonstrably transparent and objective, the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) was amended to authorize Central Government, to select through auction by competitive bidding, on such terms and conditions as may be prescribed, a company engaged in specified end use as notified by the Government.

In a written reply in the Lok Sabha today, Shri Vishnu Deo Sai has said that a minimum price (floor price) is arrived at for the block to be auctioned as per a well-defined methodology. Since the high reserve price will increase power tariffs, the Ministry of Coal agreed to the suggestion of Ministry of Power that the reserve price of coal blocks to be offered for power sector be limited to 10% of the intrinsic value of the block so as to ensure that power generation costs are kept low and therefore maintaining the larger national interest of keeping power tariffs low.