No financial and technical yardstick for coal auctions

India’s upcoming coal auctions will have no financial or technical qualification criteria for bidders, easing entry for interested firms, but will impose penalties strict enough to prevent companies from squatting on mines.

“The coal ministry has decided against keeping any entry restrictions based on technical or financial criteria, which means there are not likely to be any net worth requirement for firms. The government will incentivise expeditious coal production by firms than restricting entry to ensure serious players,” a senior coal ministry official said.

The coal ministry will soon issue draft auction rules and they will be discussed with stakeholders before finalisation, he said.

ET Energy World
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