The cabinet recommendation to e-auction cancelled coal blocks (“ >Govt. to e-auction coal mines, ” Oct. 21) is the right step towards ensuring transparency and the fast-tracking of reforms. The erratic and alleged corrupt manner in which the coal block policy was dealt with by the UPA government was a blot.
Abhisheck S.A.,
Navi Mumbai
One hopes that all private end-users are allowed to participate in the auction. This is because there is a danger of many of the present allottees of the cancelled blocks — who are end-users — taking part, trying to form a cartel and manipulating things to get back their cancelled blocks. They might also have an edge over new players, having had a head start in the earlier illegal allotment. The e-auction move might increase revenue but the end result could be the increased cost of coal production.
J.F. Dawson,
Chennai
Won’t this policy push up the prices of power, cement and steel as coal blocks will be allocated to the highest bidder? Also, the provision of the clause, which allows the entire revenue from e-auctions to go to the State government where the mine is located, can create regional disparities. Hence, the Centre must allocate a greater percentage of direct and indirect tax revenues to States that do not possess coal mines.
S. Ramakrishnasayee,
Ranipet
