"State governments forming joint ventures with private entities and diverting coal to them has become a common scene," he said. "We have amended the guidelines for coal block allocation to government companies to make them more stringent. The decision would be communicated to the states soon."
The official also said that state-run power companies like NTPC will be allotted coal blocks only if they sell power at competitive rates to state electricity distribution companies. He said the move would help in keeping electricity tariffs low.
Under the new guidelines, the coal ministry would allocate blocks to states depending on their requirement. The conditions would not apply on government companies if they bag coal blocks under auction.
The coal ministry has identified 54 coal blocks with over 18,000 million tonne of reserves for allocation under three categories depending on their end use—for commercial mining to sectors like steel and cement, power firms and government companies.
Source- economic Times