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Crisil told to make presentation on coal blocks draft report

Last Updated: Thursday, November 8, 2012 - 21:30

New Delhi: The Coal ministry has asked crisil, which had submitted a draft report on fixing reserve prices for 54 coal blocks, to immediately make a presentation on the complexities involved in the valuation of mines.

"The Coal Ministry has asked Crisil to make presentation on its draft report on coal blocks before it as there are a lot of complex issues, including valuation (of coal blocks) involved in it," an official in the Coal Ministry said.

The presentation would be made to Coal Secretary S K Srivastava during a meeting likely to be attended by representatives from other ministries like Power and Steel, the official said.

The government appointed panel, in its draft report has suggested that the valuation of coal reserves to be put up for bidding should be linked to international prices.

It had also suggested that in case of blocks for the power sector and other public sector companies, the government should provide discount as otherwise it would lead to increase in electricity tariff.

Some of the ministries like Power and Steel held consultations with Crisil on its draft report on fixing reserve prices for 54 coal blocks to be allocated through competitive bidding route.

The government is likely to begin the process of allocating coal blocks through competitive bidding route by the year-end.

The Coal Ministry has identified 54 new coal blocks for auction to the bidders for captive use in different sectors ? 16 for power, 12 for steel and 12 for government firms, among other sectors.

Crisil had emerged as the lowest financial bidder for the Coal Ministry's contract to prepare the methodology. It provides ratings, research, and risk and policy advisory services.

Recently, the Comptroller and Auditor General had estimated that financial impact of the benefit to the private allottees on account of allotment of 57 coal mines without auction was about Rs 1.86 lakh crore.


First Published: Thursday, November 8, 2012 - 21:30
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