Govt re-invites bids for 4 coal blocks

15 Dec 2020 CW Team

The Coal Ministry has re-invited bids for four coal blocks, which had their tender process annulled in the first round of auction for commercial mining, as there was only one technically qualified bidder for each mine. Three of these blocks are in Odisha, while the remaining one is in Jharkhand.

Thenotice from the Coal Ministry inviting new bids mentioned that the nominated authority had conducted the first attempt of the first tranche of auction under Coal Mines(CM) (Special Provisions (SP)) Act. Additionally, it conducted the first tranche under the Mines and Minerals (Development and Regulation)(MMDR) Act of Identified Coal Mines tender document that is dated 18 June 2020.

Additionally, it mentioned that technically qualified bidders for the tender were less than two. This was mainly for Chendipada, Chendipada-II as well as Kuraloi (A) North coal mines located in Odisha and Seregarha block, Jharkhand; however, the process was annulled.

The blocks have an annual peak-rated capacity of approximately 52 million tonnes (mt).

The Ministry added that the nominated authority would initiate the second attempt of the auction with the same terms and conditions as the first attempt of auction.

The first auction of coal mines for commercial winning experienced fierce competition.

Previously, Coal Minister Pralhad Joshi mentioned that 19 auctioned mines would generate total revenue of nearly Rs 70 billion per annum while creating more than 69,000 jobs, once it is operational.

Prime Minister Narendra Modi, had launched the auction process for 41 coal blocks for commercial mining, in June. It witnessed some larger corporate groups including Adani Enterprise, Vedanta, Jindal Power as well as Hindalco Industries.

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