Bhubaneswar: The state government Tuesday urged the Centre to put the ongoing coal auction on hold for at least three months as price of coal in market has come down this year in view of Covid-19 pandemic.
Steel and Mines Minister Prafulla Kumar Mallik has written to Union Coal, Mines and Parliamentary Affairs Minister Pralhad Joshi, in this regard. As the pandemic has affected minerals trade, the price of coal has come down significantly this year as compared to last year, Mallik said in his letter.
If the coal block auction is held in this scenario, the highest bidding price of the mineral resource may be very less. The lease period of coal blocks is 30 years and a poor response to the auction will affect the state’s coal revenue, he said.
Mallik requested the Union minister to instruct concerned officials to defer the coal block auction process for a period of three months.
When there is an improvement in Covid-19 pandemic situation and market becomes suitable, the coal block allocation process can kick start, he added. The Centre has started auction process for 41 mining blocks including nine from Odisha. They are Chendipada I, Chendipada II, Machhakata, Mahanadi, Radhikapur (East), Radhikapur (West), Brahmanbil & Kardabahal, Kuraloi (A) North, and Phuljhari (East & West). These mines have a total geological coal reserve of 10,750 million tones.
As per the schedule, the last date for submission of the bid is September 29 this year while the e-auction will be held from October 19 to November 9, 2020.