Govt to meet bidders in second phase of commercial coal mining auction

26 Apr 2021 CW Team

The Ministry of Coal will meet prospective bidders today for the second tranche of the commercial coal mining auction that has 67 mines up for sales, the highest number of mines on offer in a particular tranche after the commencement of the auction regime in 2014.

The centre has called for the pre-bid meeting after it had postponed the April 15 meeting. SBI Caps will give a presentation on the tender process, while Central Mine Planning and Design Institute (CMPDI) and the nominated authority will also be present there.

As many as 19 mines were auctioned in the first-ever tranche of commercial coal mining auction held last year, with the premium quoted by the successful bidders in the range of 9.5-66.75%.

The agreements between the coal ministry and the successful bidders were signed in January this year.

Of the 67 mines offered by the ministry, 23 are under Coal Mines (Special Provisions) Act and 44 under Mines and Minerals (Development and Regulation) Act.

The blocks on offer are a mix of mines with small and large reserves, coking and non-coking mines spread across six states—Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, and Maharashtra.

The coal ministry told the media that the government was moving towards adopting a “rolling auction” scheme.

Coal is the first mineral resource, where this mechanism is being implemented in which a pool of blocks will always remain available for auctions.

The government expects that commercial coal mining will invite new investments and boost socio-economic development in coal-bearing states, and a market-based coal economy will help the nation become “Atmanirbhar” in the availability of the resource.

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Also Read: Amendment in Mining Act: A step towards building self-reliant India

Also Read: Coal auction: 67 blocks on offer in second phase

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