Government clears coal block auction policy

NEW DELHI: The government has approved auctioning coal blocks for private steel, cement and power firms, coal minister Sriprakash Jaiswal said.

The policy will pave way for allotment of coal mines through competitive bidding for the first time.

"The cabinet committee on economic affairs has approved the policy for bidding of coal blocks," Jaiswal told media persons after the meet on Tuesday.

The government is likely to auction atleast four coal blocks with nearly 2,000 million tonnes of estimates reserves before December, a senior coal ministry official said.

The government has decided to auction only explored coal mines with known reserves.