The coal ministry has asked power companies having coal block allocations to participate in the bids for sale of power from end-use projects in line with the guidelines from the ministry of power. Else, they face cancellation of their coal blocks.

The directive came after the ministry of power recommended cancellation of allocations to power companies not selling electricity through rate-based bidding. The coal ministry has also asked the companies to take necessary steps accordingly and file compliance report to it, along with ministry of power and the coal controller. The directive has incorporated it as a condition in the allocation letter even for already allotted coal blocks for power sector IPPs.