Subsequent to the enactment of the mines and minerals(Development and Regulation) Amendment Act,2010 and notification of the auction by competitive bidding of Coal Mines rules,2012,there will be three models for allocation of coal blocks,according to information made available by a coal ministry (MoC) source.

At a meeting held recently and attended by the representatives of MoC,Coal India Limited (CIL),and state governments and Union Territories,it was decided that allocation of blocks for specified end uses other than power shall be done through competitive bidding.Government companies can participate in bidding,though allotment to those can also be made under government dispensation route.

The second model will be allocation of coal/lignite blocks for generation of power based on tariff based competitive bidding.There will be no bidding for coal blocks meant for power separately.The identified blocks earmarked for allocation to power sector will be further earmarked to the ministry of power (MoP)/state governments for carrying out the tariff based bidding.

Thirdly,allotment of coal blocks will be made to state mining/mineral development corporations for commercial mining for supplying to consumers in the state on FSA/coal linkage basis.