New Delhi: Union Minister for Coal Pralhad Joshi has launched the Tranche IV of commercial coal mine auction of 99 coal mines, including 24 new mines, on Thursday. Launching the latest tranche, the minister called upon investors who have already completed the successful bidding of coal mines to start production at the earliest for greater self-reliance in the sector. Joshi also urged officials to identify more coal blocks for auction. He also stressed that coal will continue to play a crucial role in India's energy sector for at least the next 30 to 40 years.
The minister urged investors to step up participation in the fully transparent auction process evolved by the Coal Ministry.
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 CM(SP) Act and Tranche 3 of MMDR Act, the Ministry of Coal has now launched the auction process of 24 new coal mines (nine new mines under Tranche 14 of CM(SP) Act and 15 new mines under the Tranche 4 of MMDR Act). With coal mines rolling over from Tranche III of commercial auctions and 2nd attempt of the second tranche of commercial auctions, there shall be a total of 99 coal mines on offer.
Out of the total 99 mines, 35 coal mines are under the 14th Tranche of auction under CMSP Act and 64 coal mines are under 4th Tranche of auction under the MMDR Act. Around 75 coal mines are rollover mines from the earlier round of auctions.
Of these 99 mines on offer, 59 are fully explored mines and 40 are partially explored. These mines are spread across eight coal-bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh and Telangana. The list of mines has been finalised post detailed deliberations and mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40 percent, heavily built-up area etc have been excluded.
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 promotion through incentives for early production and use of clean coal technology. Further incentives are being contemplated by the Ministry of Coal with a focus on sustainability.
The commencement of the sale of the tender document has started on Thursday. Details of the mines, auction terms, timelines etc can be accessed on the MSTC auction platform. The auction shall be held online through a transparent two-stage process, on the basis of Percentage Revenue Share. This round of auction will be the 14th Tranche of auction under CMSP Act and Tranche IV of auction under MMDR Act.
SBI Capital Markets Limited, sole Transaction Advisor to the Ministry of Coal for the commercial coal mine auction, had devised the methodology and is assisting the Ministry of Coal in conducting the auction.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated)