Coal news and updates

Swarup promises level playing field to steel in auction

January 19: Secretary (Coal) Anil Swarup has indicated that the steel industry, particularly sponge iron, would be protected wherein they would be able to win some coal blocks out of the 103 to be auctioned in the second phase of the auction process.

He was responding to a query from sponge iron industry representative on how the government plans to ensure coal supplies to them as nearly 23 of the total 62 coal-based sponge iron units in West Bengal do not have coal linkages.

“We are engaging very intensively with the steel ministry and post the auction of 101 blocks, there will be another 103 blocks that would be auctioned. You can rest assured that the interests of the steel industry shall be paramount as far as determination of allocation of blocks is concerned,” Swarup said.

“I have understood your point. I think your concern is very genuine and we are also very concerned. The allocation of blocks to power and non-power sectors was basically in terms of the capacity that they have, but this is not to say that we are not concerned about the requirements of the steel industry,” he said.

He also appreciated the point that each sponge iron plant cannot get a block to itself and explore it.

“So we are already looking at possible alternatives to see how coal supplies could be maintained to you all. The bottomline is to improve supply of coal, but to plants like yours, we have to evolve a mechanism through which we will ensure supplies. You can rest assured that we are giving it a thought and hopefully within the next few months we should be able to come out with a solution to your problem,” Swarup added.