For governing and auctioning of coal reserves and shale gas acreages in the future, the Union government has given its approval to bring in new allocation policies. This was decided by the Cabinet Committee on Economic Affairs (CCEA) on September 24. The CCEA approved a Coal Ministry's proposal for competitive bidding of blocks under production-linked revenue-sharing method and a Petroleum Ministry proposal for allocation of shale gas reserves on nomination basis.
Prime Minister Manmohan Singh-headed panel approved methodology would form the basis of allocation of 2.7 billion tonne of coal reserves in 22 acreages to private companies, apart from shale deposits in 176 nomination blocks to State-owned firms, shortly.
Under the approved policy, bids would be invited based on a production-linked multiple and a company quoting the highest multiple would become the preferred bidder.