Even as the government did not provide reasons for the cancellation, sources claimed that the shortage of interest from bidders was the causeNew Delhi: The Union government has had to once again call off the sixth and seventh rounds of coal mine auctions as it failed to garner interest from bidders. During the two rounds of auctions, 19 blocks were planned to be put on sale. Even as the government did not provide reasons for the cancellation, sources claimed that the shortage of interest from bidders was the cause. In a notice to the bidders, the coal ministry said that “The 6th tranche and 7th tranche of auction stands cancelled.”
“Accordingly, the tender process of the coal mines stands cancelled,” the ministry said.
7th round saw 13 blocks on auction
In the sixth tranche, the government had planned to put 13 blocks on sale for the regulated sectors, including iron and steel, aluminium and cement. The 13 blocks announced were Bundu, Brahampuri, Gondulpara, Gondkari, Jaganathpur A, JaganathpurB, Khappa and Extn, Bhaskarpara, Chitarpur, Gare Palma IV/1, Jamkhani, Marki Mangli IV and Sondiha.
6 blocks on sale in 7th tranche
The coal ministry announced that it would auction six coking coal blocks for the iron and steel sector in the seventh round. The blocks were Choritand Tilaiya, Brahmadiha, Jogeshwar and Khas Jogeshwar, Rabodh, Rohne and Urtan North.
Under both the rounds, the tender process was initiated vide notice inviting tender dated October 25. With low production levels, private entities have also stayed away from the auction of captive mines.
PSU Watch is a business news brand of 27 Frames Communications LLP. It places the spotlight on PSUs, Governance, Bureaucracy, Defence and Public Policy as the sector traverses through a period of radical change.