The Ministry of Coal held a stakeholders consultation on the ongoing second tranche of auction of coal mines for sale of coal (commercial mining), organised by FICCI.
Mr M Nagaraju, IAS, Additional Secretary & Nominated Authority, Ministry of Coal, Govt of India, today said: “We are offering 67 mines with a total resource of almost 36 billion tonnes and explored mines PRC of ~150 MTPA during 2nd tranche auctions of coal mines for commercial mining. This is the biggest ever offer of coal mines in the country, and consists of 6 coking coal mines as well. There are 37 fully explored mines and 30 partially explored coal mines.”
Mr Nagaraju added that the auction of these mines will bring economic growth and prosperity in the coal bearing states and urged the potential investors to participate in the auction of these mines which are being offered at the right time, considering increased push on renewables sources of energy in the long term.
The commercial coal mining auctions process was initiated last year on 18th June 2020 by Prime Minister Shri Narendra Modi in a launch event organized by the Ministry of Coal with FICCI. As many as 19 coal mines have been successfully auctioned in the first tranche with enthusiastic participation from bidders.
The auction shall be held online through a transparent 2 stage process. Key highlights of this auction process are - market linked mechanism wherein bidding shall be based on Percentage Revenue Share, National Coal Index linked payments, ease in participation with no restriction for prior coal mining experience, optimized payment structures, efficiency promotion through incentives for early production and use of clean technology, flexible operating terms etc.
The sale of tender document started from 25th March 2021 and the bid due date is 24th June 2021. Details of the mines, auction terms, timelines etc. can be accessed through the following link: https://www.mstcecommerce.com/auctionhome/coalblock/index.jsp
Upon the withdrawal of lockdown forced by COVID-19, the Ministry of Coal has been coordinating site visits of prospective bidders with the Coal Controllers Organisation which are expected to be complete this week. The Ministry is ensuring all possible assistance to the potential bidders/investors in the Indian coal sector to ensure their successful participation in the auction, the bid due date being June 24, 2021.