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The government has plans for replacing the Mines and Minerals Development Regulation Act, 1957 with a new legislation so that the concept of competitive bidding for allocating coal blocks to benefit consuming industries can be introduced.
"The new draft bill would be placed before the cabinet soon. It is a major policy so it requires cabinet approval," said the Planning Commission Member B.K. Chaturvedi during the margins of the Indian Coal Market Conference.
He added that the bill for enacting the new Mines and Minerals (Scientific Development and Regulation) Act will be presented during the winter session of Parliament.
Once implemented, the Act will provide a chance for coming up with a auctioning event for allocating coal blocks to provide assistance to industries like power and steel sectors, which use coal. These industries have been demanding speedy allocation of coal blocks.
Currently, the coal ministry approves allotment of coal blocks for captive use to public and private companies.
This act will also make sure that states receive more revenues, along with the royalties from coal blocks.
"We feel that the process for allocating coal blocks should be transparent and it should not be based on an assessment which people are not able to understand," Chaturvedi said.
