The government has asked Coal India Ltd (CIL) to stay away from the initial rounds of coal block auctions due in January 2015 that are meant for the cement, power and steel industries. The state-run monopoly miner has, however, requested the government to reallocate a few blocks to it, including two that it had lost that were being jointly developed with private firms.

"We are a commercial producer of coal and we do not fit into the category for which the blocks are being auctioned," said a senior CIL official. "CIL will stay away from the first rounds of auctions." However, CIL is likely to participate in bidding when coal blocks are auctioned for commercial mining.

The company has requested that the government return the blocks that it lost following the Supreme Court s order rendering almost all allotments illegal because substantial investment has already been made by all parties in these blocks. CIL had floated majority joint ventures with two private companies to undertake mining projects in those two blocks.