When was allocation of coal blocks through competitive bidding originally considered, and why?

13. When was allocation of coal blocks through competitive bidding originally
considered, and why?

The allocation of coal blocks through competitive bidding was first conceived of on June 28,
2004. This was a natural response, given the increase in demand for coal blocks, and a significant
increase in the price of coal worldwide. For instance, prior to 2004, the price of coal in
Australia (approx. US$30 per tonne) was equal to the cost of production of coal in India.
However, post 2004, coal prices increased drastically, jumping to as high as US$192 per tonne
in 2008. As such, the number of private players interested in mining coal increased, creating
a competitive market that the Government should have take advantage of.

Given this scenario, "there was an urgent need to bring in a process of selection that was
not only objective but also demonstrably transparent. Allocation through competitive bidding
was considered one such acceptable selection process."12 But, as is evident from the CAG and
the surrounding scam, the UPA government took 8 years to amend its policy, preferring instead
to benefit private players, rather than the public.
The UPA government embarked on a strategy to 'introduce' the policy of auction while
deliberately delaying it. By doing so, they could make claims to making policy while taking
advantage of the existing situation.