States with rich coal deposits are going to earn huge revenue as the bidding has been very aggressive
GN Bureau | February 20, 2015
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.
PM Narendra Modi’s yet another niftily acronymed scheme, UDAN – short for Ude ‘Desh Ka Aam Naagrik’ and otherwise called ‘Regional Connectivity Scheme’ in officialese – got off to a flying start on Thursday. Modi formally launched a flight from Shimla to Delhi, and
He accompanied his father to film studios in Chennai and helped him in designing sets, but Thota Tharrani wanted to be an artist. So he studied mural painting and print-making, but as luck would have it, he finally returned to tinsel town. And the world soon took note. In Mani Ratnam’s pa
Is the AAP headed for a split?
A sale-purchase agreement was signed between Numaligarh Refinery Limited (NRL) and Bangladesh Petroleum Corporation (BPC) for supply of high speed diesel (HSD) through the proposed 131 km Indo-Bangla friendship pipeline. The agree
The dismal performance of the Congress in the Municipal Corporations of Delhi elections forced party chief Ajay Maken to announce his resignation, ending an energetic effort to revive the party in the national capital. Ajay Maken, now 53, had taken over as the chief
The BJP’s clean sweep is not just a referendum on the Arvind Kejriwal government, but also could mark the beginning of the end of one of India’s youngest political parties, the Aam Aadmi Party (AAP). After the Bharatiya Janata Party’s massive win in the UP assembly elections, th