IPA Newspack
  • Home
  • now
  • politics
  • business
  • markets

IPA /

IPA Special

IPA Special

No Auction Of Coal Blocks For Power Sector: Source

NEW DELHI: India will not auction new coal mining blocks to the power sector and will instead allocate them to companies that offer to sell electricity cheapest, a government source said on Monday.
The country is introducing a new system that will put an end to allocation of captive blocks to power plants at the government’s discretion, as done in most cases in the past, and will help bring transparency at a time when the government is being buffeted by corruption scandals.
Power companies will be vying for about 16 of 54 coal blocks that the government has earmarked for allocation through bidding
expected to take place by the year-end. “Auctioning of blocks will happen for cement and steel companies. But for power it will be through competitive tariff-based bidding,” a senior coal ministry source said on condition of anonymity as the matter is still under discussion.
By using a method linked to tariffs, the government hopes to keep electricity costs low. Power tariffs are a highly political issue in a country where in some states millions of farmers are offered free electricity as a vote-winner.
The call for auctioning of coal blocks has grown following a leaked report by the federal auditor that accused Prime Minister Manmohan Singh’s government of giving up $211 billion in potential revenues by giving away coal assets too cheaply.
No coal block has been awarded since 2009. In the past, a few captive mines had been allocated to power producers offering the cheapest electricity rates but discretionary allocations have been more prevalent.
The coal ministry is appointing a consulting firm, probably within a month, to help with the auctioning and expects to finalise reserve prices for the blocks in the next four months, the source said.
Power companies are likely to be attracted to the bidding as blocks will provide them with an assured supply of a fuel shotages of which have crippled expansion in the sector and forced many power plants to run below capacity.
In some cases, power companies with captive coal blocks are also allowed to sell a small portion of electricity in the open market where they can get higher tariffs.
Coal accounts for more than half of India’s power generation and will be required for 85 percent of the 76,000 megawatts additional capacity targeted in the next five years.

IPA Special

Chinese Exporters’ Dragon Grip Entangles India

August 8, 2022
IPA Special

Congress Must Stand Up To Modi Government’s ED Terrorism

August 8, 2022
IPA Special

India Has World’s Highest Number Of ‘Extremely Poor’ Denizens

August 8, 2022
IPA Special

Workforce Being Ditched, Assurances Of The Centre Lose Face Value

August 8, 2022
IPA Special

Nitish Kumar Caught Into BJP Chakravyuha And Gasping

August 8, 2022
IPA Special

Is Indian Economy As Strong As Claimed By FM Nirmala Sitharaman

August 8, 2022
IPA Special

Kerala Wants Tax On Essential Goods Withdrawn

August 8, 2022
Happening Now

China seeks urgent meeting after Lanka bows to Indian pressure

August 8, 2022
Politics

Akhilesh to start Tiranga campaign with padayatra

August 8, 2022
Politics

UP minister says he is ready to go to jail for his community

August 8, 2022
Politics

Gehlot’s rape remark kicks up row

August 8, 2022
Happening Now

Speculation over Nitish Kumar walking out of BJP alliance

August 8, 2022
Politics

BJP launches drive to woo minorities in Uttar Pradesh

August 7, 2022
Happening Now

Maiden launch of new ISRO rocket runs into trouble

August 7, 2022
Politics

Parliament ‘dysfunctional’, says Chidambaram

August 7, 2022
Politics

Dhankhar’s victory margin highest since 1997

August 7, 2022
Politics

Opposition parties see a new dawn for Congress in Bihar

August 7, 2022
Politics

Modi says proud moment for India to have ‘kisan putra VP’

August 6, 2022
IPA Special

National Rural Employment Guarantee Scheme Being Sabotaged

August 6, 2022
IPA Special

Supreme Court Finds ‘Shackles Of Policy’ Put By Govt As Intimidating

August 6, 2022

An appeal

The legacy of IPA, founded by Nikhil Chakravartty, the doyen of journalism in India, to keep the flag of independent media flying high, is facing the threat of extinction due to the effect of the Covid pandemic. Only an emergency funding can avert such an eventuality. We appeal to all those who believe in the freedom of expression to contribute to this noble cause.
Click here to learn more

Share

Reply

  • 0
More on IPA

Chinese Exporters’ Dragon Grip Entangles India

August 8, 2022 4:01 pm | IPA Staff

 By Nantoo Banerjee Why is it a matter of such a tearing hurry for Indian Railways that it has to rush to China to import...

IPA Special

Congress Must Stand Up To Modi Government’s ED Terrorism

August 8, 2022 4:00 pm | IPA Staff

By Amulya Ganguli The enforcement directorate’s relentless pursuit of the Congress and other opposition parties can prove to be counter-productive in the long run. For...

IPA Special

India Has World’s Highest Number Of ‘Extremely Poor’ Denizens

August 8, 2022 3:59 pm | IPA Staff

 By Sushil Kutty Droupadi Murmu has taken oath on July 25, the 15th President of India. Her salary: Rs 5 lakh per month, plus perks....

IPA Special

Workforce Being Ditched, Assurances Of The Centre Lose Face Value

August 8, 2022 3:58 pm | IPA Staff

 By Gyan Pathak Social security coverage to entire workforce in India will remain a dream even if the Code on Social Security 2020 is implemented...

IPA Special

Chinese Exporters’ Dragon Grip Entangles India

in IPA Special
Aug 8, 2022   ·  

Congress Must Stand Up To Modi Government’s ED Terrorism

in IPA Special
Aug 8, 2022   ·  

India Has World’s Highest Number Of ‘Extremely Poor’ Denizens

in IPA Special
Aug 8, 2022   ·  

Leave a Reply Cancel reply

You must be logged in to post a comment.

Follow us on
Up Next: Now, gujarat to cover narmada canals with solar panels!
©2020 -2021 India Press Agency, All Rights Reserved
Newspack by India Press Agency
Posting....
logo
  • Home
  • now
  • politics
  • business
  • markets