June 5, 2012.Amid controversies shrouding coal blocks allocation, the government said it has finalised three models - auction, tariff-based competitive bidding and government dispensation route -- for grant of mines to various categories of firms. There shall be three categories/models for allocation, the Coal Ministry has said in a letter to Chief Secretaries of all states. The ministry had earlier notified the Auction by Competitive Bidding of Coal Mines Rules, 2012 and the MMDR Act, 2010. Grant of mines to companies for specified end-uses other than power "shall be done by auction through competitive bidding process...Government companies can also participate in the process, though allotment to government companies for end- use can also be made under Government dispensation route", the letter said. On allocation of blocks for power generation through competitive bidding, it said, "The identified blocks earmarked for allocation to the power sector would be earmarked to Ministry of Power/State Government for carrying out the tariff based bidding." Besides, the allotment would be done to mining/mineral development companies in states for commercial mining on fuel supply agreement/coal linkage basis.