India's largest power producer NTPC on Tuesday said it is important to have in-principle green clearances when coal blocks are auctioned.
"Environment clearances, land acquisition should be done beforehand, otherwise the companies may not be interested in bidding for those blocks," said Arup Roy Choudhury, Chairman and Managing Director of NTPC.
Choudhury also added that geological reserves should be ascertained in advance, coal mining plan should be approved to attract more investors for the coal blocks.
Government proposes to allocate 54 mines. However, the nodal Coal Ministry is yet to come up with a clear roadmap on how the auction process would be carried.
"Pool pricing will affect the customer not me directly," said Choudhury.
He said that domestic coal production is not sufficient to meet the power sector's demand and increase in coal prices due to pooling will have to be passed through.
The contentious issue of coal pool pricing still remains in conclusive. "Stakeholders will have to deliberate on CIL's proposal for pooling," Choudhary said.
According to the revised pooling mechanism, coal prices may go up by 8 to 21 per cent during the 12th Plan.