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Commercial mining: Govt to launch tranche-III auction for 40 new coal mines on Oct 12

The Ministry of Coal is set to launch tranche-III of commercial coal mine auction for 40 new coal mines on October 12
Commercial mining: Govt to launch tranche-III auction for 40 new coal mines on Oct 12
Commercial mining: Govt to launch tranche-III auction for 40 new coal mines on Oct 12
  • Since the ministry has entered into a rolling auction mechanism, the coal mines rolled over from the previous tranche will also be on offer
  • The government has so far auctioned 27 coal mines for commercial mining under the new regime

New Delhi: The Ministry of Coal is set to launch tranche-III of commercial coal mine auction for 40 new coal mines on October 12, an official statement said on Friday. Since the ministry has entered into a rolling auction mechanism, the coal mines rolled over from the previous tranche will also be on offer. Union Minister of Coal Pralhad Joshi will be the chief guest of the launch event, said the statement. The government has so far auctioned 27 coal mines for commercial mining under the new regime.

Commercial coal mine auction: What does rolling mechanism mean?

At the launch of tranche-II of commercial coal mine auction on March 25 this year, the Coal Minister had said that encouraged by the past success, the government is moving towards adopting a ‘Rolling Auction’ mechanism for conducting future auctions. Coal is the first mineral resource where rolling auction mechanism is being implemented in which a pool of coal blocks will always remain available for auctions, he had said.

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“With rolling auctions, we will upload a comprehensive list of mines along with key technical data and bidders can submit their preferences for the mines to be included in the next tranche of auction. This would be a continuous process and would result in expediting the auction setup. Moreover, it will also help bidders in planning better and would further enhance transparency in the system,” the minister had said.

Coal’s relevance in India’s energy mix to continue

Amidst mounting pressure to declare net-zero emission goals, India has said that it will continue to use coal to meet its energy requirements as a developing nation for the next two to three decades. The Coal Minister has on several occasions assured investors that coal will continue to play a dominant role in India’s energy mix. “We are making coal the driver of economic activities in the country. There are huge opportunities that the Indian coal sector is offering. Therefore, I invite investors to come and be a part of vastly untapped coal reserves in the country. Grow your businesses and take India along on the growth course,” Joshi had said at the launch of tranche-II of commercial coal mine auction.

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