- The government has launched the fourth round of auction of coal mines.
- The commencement of the sale of tender document will start on Thursday, through a two-step transparent online process.
- Currently, there are a total of 99 mines, and a few more are to be added to the list.
- It is looking forward to self-reliance in the coal sector since it will continue to be crucial in India’s energy sector.
Pralhad Joshi, Union Minister of Coal, Mines and Parliamentary Affairs, launched the fourth round of auction of coal mines for commercial mining under which 99 blocks, including 24 new mines have been put on sale, according to a statement.
While launching the latest tranche, with coal mines rolling over from the third round of commercial auction and the second attempt of the second tranche of commercial auctions, the minister called upon the investors who have already completed successful bidding of coal mines to start production at the earliest for greater self-reliance in this sector.
He urged the officials to identify more coal blocks for auction and incentives are being contemplated by the ministry with a focus on sustainability.
Joshi further pointed out that at least for the next 30 to 40 years coal will continue to be crucial in India’s energy sector. He urged investors to step up participation in the fully transparent auction process evolved by the ministry. The auction shall be held online through a transparent two-stage process, on the basis of Percentage Revenue Share.
The commencement of the sale of the tender documents will start on Thursday. Details of the mines, auction terms, timelines etc. can be accessed on the MSTC auction platform. (https://www.mstcecommerce.com/)
SBI Capital Markets Ltd, sole transaction advisor to the Ministry of Coal for the commercial coal mine auction, had devised the methodology and is assisting the ministry in conducting the auction.
Key features of the auction process include the introduction of the National Coal Index, ease in participation with no restriction for prior coal mining experience, full flexibility in coal utilisation, optimised payment structures, efficiency in promotion through incentives for early production and use of clean coal technology.
The list of mines has been finalized post detailed deliberations, and mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40 per cent, heavily built-up area etc. have been excluded.
Of the total 99 coal mines, 35 are under the 14th tranche of auction under CMSP Act and 64 are under the fourth tranche of auction under the MMDR Act, i.e., (The Coal Mines (Special Provisions) Act, 2015) and the Mines and Minerals (Development and Regulation) Act, 1957, respectively. Of these, 99 mines, 24 are new coal mines whereas the remaining 75 are rollover mines from the earlier round of auctions.
This will be the 14th round of auction under the CMSP Act and the fourth tranche of auction under the MMDR Act. After the successful auction of 28 coal mines in the first two tranches and upon receipt of 53 bids for 20 coal mines under tranche 13 of CMSP Act and tranche 3 of MMDR Act, the ministry has now launched the auction process of 24 new mines. Of these 24 mines, 9 are under tranche 14 of CMSP Act and 15 under tranche 4 of MMDR Act.
