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Roll out of e-auction of de-allocated blocks soon: Srivastava

October 27: The government is on the verge of finalising the modalities for e-auctioning of the de-allocated captive coal blocks and will roll out the same very soon to resolve the problems arising out of the Supreme Court judgment, Secretary (Coal) S K Srivastava said in Kolkata.

Talking to reporters after inaugurating the online PF monitoring facility for the benefit of members of the Kolkata Region of Coal Mines Provident Fund Organisation (CMPFO), Srivastava said, “Some work-related to the modalities for e-auction of the blocks have already been done and the balance will be worked out.”

“You can rest assure that it will be a successful model, which will be very comprehensive,” he said on being asked whether the modalities have already been worked out.

Asked when the first e-auction of the de-allocated blocks would be held, the Secretary (Coal), said, “It will happen very fast. The e-auction will happen very soon because the government also knows that the basic way of resolving the problem is to auction them off as fast as possible.”

He pointed out that letters have already been issued to the coal block allocates to give details of their assets as part of an initiative to fast-track the process.

Asked what would happen in case there is delay in providing details by the block allocatees, Srivastava said, “Provisions have already been made in the Ordinance issued last week. It mentions what would be the penalty in case of delay in submission of details. It is quite detailed and covers all aspects.”

Asked how serious the government is about pooling of coal prices, which was once discarded in 2010, the Secretary (Coal) said, “Till the final decision has been taken, it will be difficult to give an answer on this. There are certain competent authorities who decide on the issues like this and they keep on analysing, reviewing and understanding the pros and cons of price pooling and then will come to a decision.”

Asked whether the present situation will not add to the problem for coal end-users due to the gap between availability and linkages given by Coal India Ltd (CIL), Srivastava said, “I don’t think so. My view is that we are resolving a lot of problems rather than adding new ones.”

“We have problems, which, due to circumstances, have been brought around. These are is not the fault of any one but due to various circumstances – internal and external. We are in the process of resolving these,” he added.

Commenting on reports that the government is trying to do away with dispensing of captive blocks through the government dispensation route, Srivastava said, “Anyone who has studied the Ordinance carefully will understand that it provides a lot of opportunities. It provides for the government dispensation route too.”

“This government dispensation route has not been scrapped by the court and we have clarified it through the Ordinance. Wherever there are legal reservations, we clarified through the Ordinance,” the Secretary (Coal) said, adding, “It does not make any distinction between the Centre and the state.”

To a query, he said, there is no restriction on the participation of existing captive block allocatees in the e-auction. “It is not mentioned in the Ordinance anywhere (that they cannot participate). The Ordinance only says, and very clearly too, one can participate in the auction after one has paid the additional value.”

“That is why we have deliberately provided for e-auction so that they can go for it. It is not a one-time opportunity for them. They have a window within which they can keep on bidding and win the block in a transparent process,” Srivastava said.

“If you want to give it through any other process, it may lead to questions on grounds of transparency. It may raise questions on grounds of objectivity and that is why e-auction has been provided,” he added.