KOLKATA (miningweekly.com) - As spadework for the new Indian government, the incumbent dispensation has appointed a high level panel to identify more coal blocks to be put up for auction.

On Wednesday, the Coal Ministry issued a notification setting up a nine-member panel mandated to identify new, explored-since-2008 coal blocks, which could be put up for competitive bidding in addition to the 54 blocks already up for auction.

The 54 blocks identified have estimated reserves of 18-billion tonnes.

The same panel would also identify coalbed methane blocks with auction potential and revisit blocks allocated earlier but relinquished by operators, the notification said.

The panel, to be headed by an additional secretary in the Coal Ministry, would also look into the contentious issue of the capability of major Coal India Limited (CIL) to bring into production coal blocks already allotted to it, and in the case that  shortcomings were identified, to explore opportunities for reallocating these blocks to other miners or including them in the auction.

The Coal Ministry had kicked off the auction of three of the 54 coal blocks to user industries in the steel and cement sectors, and bids were currently being sought. Last year, the government had allocated 17 coal blocks to government-owned and -managed companies like NTPC Limited, the country’s largest power producer.

The much-delayed auction of the three blocks started in February 2014, but was held up once again as several bidders responding to requests for proposal sought clarifications on the terms in the bid documents.

Responding to queries of prospective bidders, the Coal Ministry last week clarified that a consortium of bidders would need to consist of six entities, against the four stipulated in the bid document. Moreover, each member of the consortium should have minimum of 10% share in the consortium against 20% laid down earlier.

It also clarified that successful bidders for the three blocks would have no right to sell, market or export production from these mines other than use it specifically for the end-use plants of the bidders as mentioned in their bids.

Government officials, however, acknowledged that the new government, expected to take charge later this month, would be under no obligation to accept the panel set up by the current Ministry, and even officials with the rank of secretary or under secretary could change as it was the prerogative of the new government to reshuffle bureaucrats.

However, considering that the energy sector and the shortage of coal supplies would figure high on the list of priorities of any government, setting up the panel was a bi-partisan exercise and would expedite future government initiatives in this area, officials said.

The results of the Indian national elections would be announced on Friday and a new government was expected to take charge before month end.