Central, state power firms to bid for coal blocks.

The coal ministry is likely to allow central and state-owned power generating companies to bid for four coal blocks with combined reserves of 2,000 million tonnes. At present, only state distribution companies can apply for the blocks that will be further awarded to power project developers under tariff-based bidding.

The ministry is considering scrapping the present bid process due to poor response from state utilities. 'States have not understood the concept of coal block allocation, as many state-owned generating companies have applied for the blocks, whereas they are not eligible. We did not receive applications from states that are better prepared. We will hold a meeting with state governments and the power ministry to see if we can include state-owned power generating companies in the process,' a top coal ministry official said.

The official said the ministry has 'in-principle' decided to scrap the current process under which power distribution companies of Madhya Pradesh and Karnataka emerged as frontrunners for two of the four coal blocks on offer.



ET