Coal block auctions to result in lower power rates, says minister

States with rich coal deposits are going to earn huge revenue as the bidding has been very aggressive

GN Bureau | February 20, 2015


#coal block   #auction   #power   #piyush goyal   #court   #bidding  

Even as the government is looking at bonanza from the coal blocks auction, power minister Piyush Goayl has said that the power tariff will come.

The allocation of coal blocks will fetch a whopping  Rs15 lakh crore over the next 30 years, for the respective states.

Post auctions, the coal minister said that the country would also see the power costs coming down because the benefit of the auction will have to be passed on to the consumers.

“The important thing is that post these auctions (of coal block) there will be three to four very important changes...Overall the entire economy will get a push with adequate fuel reaching these end-use plants,” Goyal told reporters in New Delhi.

The government has put on offer 19 coal blocks in the first lot for auction.  The government is auctioning the coal blocks after the Supreme Court cancelled allocation of 204 mines in September last year.

Indian companies have bid aggressively for coal blocks in the country’s first auction.

GMR Chhattisgarh Energy, Reliance Cement, Sunflag Iron and Steel, CESC, Hindalco Industries, Jaiprakash Associates and BALCO are among the companies that bagged 11 coal mines in the previous four days of auction.

Meanwhile, according to India Ratings & Research (Ind-Ra), developers are quoting negative final price offers in the reverse auction process, for coal blocks earmarked for the power sector, implying zero fuel cost pass-through.

While this is beneficial for the end consumers and the state governments, the same has the possibility of negatively impacting the financial profiles of the developers.

In the reverse bidding, the government sets a ceiling price, which represents the coal cost of Coal India, and the bidders are required to bid lower than the ceiling price. The bidder which has the bid the lowest gets the mine.

The last day for the auction of first lot of mines is February 22.

 

Comments

 

Other News

Battle over cattle, Delhi govt schools lead the way and, why we must return to Gandhi & Tagore

On May 23 this year, the ministry of environment issued ‘Rules on prevention of cruelty to animals (regulation of livestock market)’ with the purported aim of regulating animal markets. When one reads the rules – notwithstanding the lame efforts from union ministers to issue clarificati

BEML unveils 9 MW capacity windmill park

  BEML, a mini ratna category-1 enterprise of the defence ministry, has set a target of using 100 percent renewable energy for its own consumption.   In this connection, BEML’s 9 MW Windmill Park installed at Bagalkot District in Karnataka was recently

BHEL registers increase in intellectual capital

  Bharat Heavy Electricals Limited (BHEL), a Maharatna enterprise, has recorded nearly 14 percent growth in its intellectual capital in 2016-17 fiscal. During the year, a record 508 patents and copyrights were filed by the company, translating into filing of nearly two patents/copyrights

NALCO partners with CII, Odisha for outreach programmes on GST

  National Aluminium Company Limited (NALCO) has joined hands with the Confederation of Indian Industries (CII), Odisha, to organise outreach programmes for industries and other stakeholders on GST implementation.   Series of interactive programmes are being

EPFO inks MoU with HUDCO for Housing for All by 2022

  Taking prime minister Narendra Modi’s vision of ‘Housing for all by 2022’ forward, Employees` Provident Fund Organisation (EPFO) has amended the EPF Scheme, 1952 to provide assistance in acquiring affordable houses to the EPF members by allowing withdrawal from PF to

IndianOil LPG import terminal to reduce refill backlog in Kerala

IndianOil is currently transporting bulk LPG from Mangalore to various LPG bottling plants in north Kerala through about 100 bullet trucks every day, which ply on narrow highways. A pipeline connecting the proposed LPG import terminal to Kochi Refineries Limited and the LPG bottling plants at Udayamperoo



Video

पाकिस्तानी सेना कैमरे में कैद करना चाहती थी ये हमला

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter