Coal Ministry denies allegations of barring West Bengal from coal auctions for corporate benefit

The Coal Ministry today said that allegations in a section of media that it barred West Bengal from coal auctions to benefit a corporate are incorrect and baseless. There were allegations that the Coal Ministry disqualified West Bengal Power Development Corporation Limited from participating in the auction of West Bengal-based coal mines considering WBPDCL as a prior allottee.

In response to allegations, the Ministry said Coal mines are allocated through auction to Government and Private companies and through allotment only to government companies. As per Coal Mines (Special Provision) Act, if the prior allottee has not paid additional levy, then the prior allottee, its promoter or any of its company of such prior allottee shall not be eligible to bid.

The Coal Ministry said that since WBPDCL was one of the promoters of Bengal Emta Coal Mines Ltd which is a prior allottee, it was disqualified from participating in the auctions. It also said that allegations of collusion and less competition for private companies are baseless