The government has invited bids for auction of three coal blocks in Jharkhand and West Bengal for captive use by steel, cement and sponge iron companies.

An official statement said, while two blocks are in Jharkhand, one is in West Bengal. The auction will feature mines that have total reserves of 500 million tonnes.

This is for the first time that the government has initiated auction of coal blocks through competitive bidding for specified end-uses.

The move comes after the Centre drew flak for delaying the auction and the Ccmptroller and Auditor General saying that allotment of 57 mines to private firms without auction resulted in a notional loss of 1.8 lakh crore rupees to the exchequer.