Commerce and Industry Minister Nirupam Sen apprehended decline in the steel segment of West Bengal if the Union government moves ahead with its plans to introduce open auction of captive coal blocks.

Mr. Sen, while speaking at the Steel Conclave 2009, organized by the CII, admitted the adverse impact of proposed open auction of the coal mines on investment prospectus of the state and said that it could also impact coal dispensation from the mines located in the state.

Mr. Sen said that uncertainties over coal linkage could hamper at least three mega steel projects Videocon, Bhusan Steel, and Kalyani Steel, causing serious loses to the state. The minister added, "Progress of these projects would suffer if the state government is unable to provide coal linkages. The banks too would not give loan if the project does not have confirmed coal linkage."

Meanwhile, the West Bengal Government has registered its protest against the move by writing a letter to the Union government.