Government shows resolve to stick to deadline on coal auctions

New Delhi(PTI): CII has welcomed the government’s decision to begin the auction process for coal blocks beginning December 25 reinforcing its resolve to kick start the stranded power sector.

The government’s resolve to keep to the deadlines it had set for itself to revive the coal sector, a crucial segment of the economy that impacts growth will reinforce investor confidence in the government’s policies. The move to bring in auctions to give out coal blocks will ensure transparency and fair play in coal block allocation, a much required initiative to ensure higher participation by the private sector.

The cabinet has decided to re-promulgate the coal ordinance that was introduced on October 20th 2014 after the Supreme Court scrapped over 200 coal block allocations. This decision will further re-instate the government position and commitment in carrying out the reform process in the country that will help developers infuse additional investments in the infrastructure sector in the country said Chandrajit Banerjee, Director General, CII.

The urgency shown by the government in the auctioning of coal blocks will ensure adequate amount of coal for sectors which are starved for coal and are importing huge chunk of their coal requirements said Banerjee.