Govt mulls linkage for captive power for steel, iron

Sources tell CNBC-TV18 that the government is mulling linkage for captive power for steel, cement and iron sector. The government will be putting out a norm in the bid document for the upcoming coal block auctions.

The linkage is likely to be considered for companies where blocks were deallocated with the condition that no criminal records must be present. The government may ask the auction winners to justify coal India linkage. Winners without the end-use plan may have to relinquish linkage.

The government may also mull granting relinquished linkage for steel and cement companies. The bid document is expected to have riders for relinquishing linkage.

The move is likely to benefit companies like Hindalco, Monnet Ispat, Bhushan Steel and JSPL.