Bhubaneswar, Sept 22 (LocalWire): The State government has now approached the Union Ministry of Coals to defer the coal auctions for next three months citing pricing issues.
A letter written by the State Steel and Mines Minister Prafulla Kumar Malik to the Union Coal Minister Prahlad Joshi said that as the coal prices are allegedly down in the market, the auctions should be postponed.
The state minister said that owing to the Coronavirus pandemic, the coal market has been affected and the prices have gone down.
He said that under such circumstances, the coal auctions would not be a good idea.
Malik said that if the auctions are done now, the highest price for auctions could be lower. As the mining goes as long as 30 years, it can have a long lasting impact on the overall revenue collection from the coals to the government, he said.
This comes at a time when the final bid date of September 29 is approaching fast. On the other hand the online auctions would be held from October 19.
Recently the Ministry of Coals had started auctions of several coal mines in the country including nine from Odisha. While some states have objected to the coal auctions, the state has asked for delaying the process due to the pandemic.