New Delhi: A Bill to ensure transparency and a clear-cut selection process in competitive bidding for coal blocks by private companies was introduced in the Rajya Sabha today. The Mines and Minerals (Development and Regulation) Amendment Bill 2008, seeking to carry out changes in the original Act of 1957, was moved by Mines Ministers Sis Ram Ola. The Bill aims at ending discretion of bureaucrats in the allocation of coal blocks.
The number of coal blocks available for allocation is declining while the number of applicants per block is rising, as the demand for coal keeps increasing. "This has made selection of an applicant in respect of a block difficult and vulnerable to criticism on the grounds of lack of transparency and objectivity," the statement of objects and reasons of the Bill said.
However, the new competitive bidding rules would not be applicable to the public sector companies. They would also not be applicable for allocation of coal blocks to a company that has been awarded a power project on the basis of competitive bids for tariffs including ultra mega power projects. At present a screening committee set up in the Coal Ministry allocates coal blocks to private companies for captive mining of coal. (PTI)
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