The Union government has called bids from public sector undertakings (PSUs) for five lignite blocks with an estimated 156 million tonne of reserves. The lignite blocks in Gujarat and Rajasthan will be awarded to state-run companies depending on various factors like location of the end use project and preparedness of the end use project, a government notice said.
The five mines are part of the eight lignite blocks identified for allocation by the government under the competitive bidding process. The remaining three blocks – south of Rajpardi in Gujarat, Bithnok Extension and Bapaue in Rajasthan – have been earmarked for the power sector and would be offered through tariff-based bidding. The government recently awarded 14 coal blocks to state and central public sector undertakings.