The Union government has called bids from public sector undertakings (PSUs) for 5 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 has recently awarded 14 coal blocks to state and central public sector undertakings.