This Article is From Oct 20, 2014

Cabinet Clears Ordinance to Facilitate Re-Allocation of Coal Blocks: Highlights

Cabinet Clears Ordinance to Facilitate Re-Allocation of Coal Blocks: Highlights
New Delhi: Finance Minister Arun Jaitley is addressing a press conference about the meeting of the Union Cabinet. Here are the highlights:

  • Power, cement and steel are three priority sectors.
  • India importing coal even when it has surplus.
  • Power, steel going through tough times.
  • Government will bring in ordinance for reallocation of coal blocks
  • The ordinance has the following important features:
  • As far as the state sector requirements are concerned, coal mines would be allocated to them
  • As far as the private sector is concerned, actual users of cement, steel and power (sectors) who apply - a certain number of coal mines will be put in the pool and there would be an e-auction
  • The auctions will also determine the valuations - a transparent process would decide on the allocation of these mines
  • This process will be completed in the next 3-4 months
  • Proceeds of all auctions would go the state government entirely
  • States like Jharkhand, Odisha, West Bengal, Chhattisgarh would be the biggest beneficiaries
  • There would be a financial empowerment of the eastern states
  • Since the emphasis of the government is on manufacturing sector, an expeditious disposal of this process would give a huge impetus to the manufacturing sector
  • This would not impact Coal India - it will continue to function as is

.