Wednesday, February 18, 2015

Coal blocks allocation starts with a bang

Government of India is happy to see aggressive mood of the industrialists in the bidding and is expecting to cover the loss of Rs 1.86 lakh crores as estimated by CAG. For instance Reliance Cement’s bid of Rs 1,402 per tonne which has been more than the base price by nine times. Also in the case of Talabira – I block GMR energy bid for Rs 402 per tonne which is four times the base price of Rs 100 per tonne. Such an enthusiasm in the bidding process has encouraged the government and has given hope that the amount of revenue to be generated from such bidding to be more than the loss estimated by CAG. 

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