Hi HH,
Allocation - maybe I was not exactly expressing the full meaning of this expression.
Allocation of natural resource in India means that the access to the resource in various stage (RL, ML or later production) is given to a vendor , or a vendor is granted rights to the site by the process which is not a competitive bidding.
Bidding can be exercised in the form of public tender, limited tender, life auction or electronic auction, although the last option is most commonly used.
Referring to infamous 3G scam - even in this case the ministry went for auction , however a very brief one..
Call blocks were given to the end users of coal just like that. They were only obliged to develop blocks within a given period of time. They failed even with this simple task.
A recent closure of iron ore mines showed clearly the direction - government wants to execute full control over NR either directly through PSUs or indirectly by allowing in only REPUTED companies with sound financial status. And I guess IRL is not a part of this team.
IRL Price at posting:
0.4¢ Sentiment: Sell Disclosure: Held
