Bhubaneswar: Odisha Steel and Mines Minister Prafulla Mallik has urged the Centre to defer coal block auction process by three months in view of the unfavourable market condition due to COVID19 pandemic.
In the letter, Mallik had requested Union Coal, Mines and Parliamentary Affairs Minister Pralhad Joshi, requested to direct the officials for the deferment of the auction.
“When there is an improvement in COVID-19 pandemic situation and market becomes suitable, the coal block allocation process can kick-start,” the letter stated.
He further said as the pandemic had affected minerals trade and the price of coal had come down significantly this year as compared to last year. “If the coal block auction is held in this scenario, the government might not be able to get the better price of the natural mineral resource. The lease period of coal blocks is 30 years and a poor response to the auction will affect the state’s coal revenue,” he added.
In June, Prime Minister Narendra Modi had launched the auction process of 41 coal blocks for commercial mining. Among them, nine – Chendipada I, Chendipada II, Machhakata, Mahanadi, Radhikapur (East), Radhikapur (West), Brahmanbil & Kardabahal, Kuraloi (A) North, and Phuljhari (East & West) – are in Odisha.
While the last date for submission of the bid is September 29, the e-auction is scheduled to be held from October 19 to November 9, 2020.
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