Govt moots Rs 150/tonne floor price for auction
The draft norms for auctioning coal mines, published on Thursday, suggests a floor price of Rs 150 per tonne for bidders from steel, cement as well as captive power plants and a reserve price of Rs 100 a tonne for mines to be allotted to government companies and power stations.
The reverse auction method has been suggested for generation units with cost-plus and tariff-based power purchase agreements with a view to protecting electricity consumers from a tariff shock.
TOI had on December 9 first reported these prices and the government’s preference for the reverse auction process for giving mines to power plants.
Under this method, the ceiling price for coal blocks would be set according to the run-of-mine price of equivalent grade specified by Coal India. Under run-of-mine scenario, the mined coal is of a size that can be processed straightaway without further crushing.