STOCK MARKET BSE NSE

President Nod for Promulgation of Coal Ordinance

Published: 22nd October 2014 06:00 AM  |   Last Updated: 22nd October 2014 06:00 AM   |  A+A-

NEW DELHI: In a step towards energy sector reform, President Pranab Mukherjee on Tuesday gave his nod for promulgation of the first ordinance of Narendra Modi Government allowing e-auction of coal blocks to private companies. The decision, that was cleared by the Union Cabinet on Monday, comes in the backdrop of the Supreme Court order cancelling allocation of 214 coal blocks to several private and public sector firms since 1993.

Since it was feared that several power projects in the pipeline would be hit hard by the decision, the government sought to allow private companies to bid for captive use and allot mines directly to state and C entral public sector undertakings. “The President has signed the ordinance,” the President’s office confirmed.

Following this ordinance, energy sector requirements, including those of the central and state governments, would be met through the government dispensation route and coal mines would be also be allocated to PSUs such as NTPC or state electricity boards. Union Finance Minister Arun Jaitley said it would boost the revenue earnings of states, particularly those in the Eastern zone.

The biggest beneficiaries would be Jharkhand, Odisha, West Bengal and Chhattisgarh. MP, Maharashtra and Andhra Pradesh would also benefit from the law.

While briefing the media after on Cabinet meeting on Monday, Jaitley said the e-auction process would be “transparent” and completed in “three to four months” with proceeds going entirely to the state govts, where the mines are located.All companies, except those convicted by courts, will be allowed to participate in the auction.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp