Resources | VOL. 9, ISSUE 89, March-April,2015

Coal Auction in India

Since the days of the industrial revolution, coal has played a crucial role in the development of industry. It has been a source for power generation as well as a critical input for many major industries. As one of the fastest growing economies in the world today, India is also largely dependent on coal for sustaining its expanding industrial structure. Coal is a critical input for power, steel and cement industries. It also continues to be the most dominant source of energy in India. Almost 52 per cent of primary energy needs in India are met by coal, while the world figure for the same is around 29 per cent. Coal contributes to around 60 per cent of India’s power generation (All India Installed Generation Capacity Report, January 2015, Central Electricity Authority). Incidentally, India is the world’s third largest coal producer, after China and the USA. History of Coal Allocation Policies and Coal Auction The Ministry of Coal under the Indian government is responsible for the development and exploitation, production, supply, distribution and pricing of coal and lignite reserves. Regulation of these activities is done through the government-owned Coal India Ltd., and the Neyveli Lignite Corporation. The Ministry also manages the government’s 49 per cent equity participation in the joint venture public sector Singareni Collieries in Andhra Pradesh. According to the July 1992 Comptroller and...

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