India companines bid aggressive coal block auction for...

India companines bid aggressive coal block auction for yearsmce-anchor​

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It is reported that Indian metal and cement companies have bid aggressively for coal blocks in the country's first auction to sell mines - of the 19 blocks currently on offer, 14 have already sold for nearly INR 80,000 crores.

In 2012, in a body blow for the Congress-led government of Dr Manmohan Singh, the national auditor (CAG) said that the lack of a transparent bidding process in mining rights had cost the country a swindle worth INR 1.86 lakh crores. The bids so far suggest the sales proceeds will zip well past that estimate.

Ms Nirmala Sitharaman, Commerce Minister, said that "Certainly the CAG's position has been vindicated. Institutions of the country are doing their best."

The auction comes after the Supreme Court last year ordered the cancellation of nearly 200 mining licenses issued by successive governments since 1993. The government had said it expects to raise Rs. 15 lakh crore from the new bidding process. The second round of auctions will include 43 blocks from February 25th to March 5th.

Companies who are bidding for the licenses want to cut imports and slash their dependence on inefficient government monopoly, CIL. The companies are allowed to bid for enough coal to fuel a 50% expansion of their current metal or cement capacity. The companies have declined to comment on the auctions until the whole process is complete. Most of the winning bids so far have been higher than analysts' expectations, based on the benchmark price of state-run CIL.

CIL prices are set according to cost rather than based on supply and demand in the market and its costs are high at INR 1,118 per tonne, more than half of which comes from employee and social costs.

According to some analysts, for the private companies, mining costs are likely to be between INR 400 and 600 per tonne.

Source - www.ndtv.com

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Delhi govt plans to bid for coal block to achieve 4,000 MW power target - Reportmce-anchor​

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It is reported that Delhi Govt plans to bid for coal block to achieve its target of generating 4,000 MW of power for the city.

Mr Arvind Kejriwal-led AAP, that trounced the BJP in Delhi assembly polls recently, had promised to cut electricity bills by half among other freebies in its election manifesto.

Delhi has a power demand of about 5,000 MW and is largely dependent on other states to meet its requirements.

Meanwhile, in an apparent dig at AAP over its poll pledge to reduce power bills, Prime Minister Mr Narendra Modi had recently said that how such promises could be made by political parties in states which are dependent on electricity supply from outside.

Source – Zee News

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