Commercial coal auction: Govt initiates 2nd attempt to auction 4 mines that got 1-2 bids

• These four mines are Chendipada and Chendipada-II, and Kuraloi (A) North in Odisha and Seregarha Coal Mine in Jharkhand

• The government will conduct the auction under the same terms and conditions as the previous round and has asked interested players to submit bids by January 12, 2021

New Delhi: The Ministry of Coal has initiated the second attempt to auction four coal mines that received less than two bids in the previous tranche of commercial coal auction, a notification floated by MSTC showed. These four mines are Chendipada and Chendipada-II, and Kuraloi (A) North in Odisha and Seregarha Coal Mine in Jharkhand. The government will conduct the auction under the same terms and conditions as the previous round and has asked interested players to submit bids by January 12, 2021.

"Pursuant to Para 2.2.(b) of the Office Memorandum No CBA2-13011/2/2020-CBA2 dated June 1, 2020 issued by Ministry of Coal, the Nominated Authority is initiating the second attempt of auction of these coal mines with the same terms and conditions as in the first annulled attempt of auction ie vide tender document dated June 18, 2020, and with the highest Initial Offer of Technically Qualified Bidder, if any, in the first annulled attempt of auction as the Floor Price for the second attempt of auction," said the notification.

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"Accordingly, bids are invited in digital format only from the eligible companies in accordance with the terms and conditions of the Tender Document. Detailed Tender Document can be downloaded from the website of MSTC Limited," the document added.

Last date for purchase of tender document is Jan 9

For the coal extracted from the coal mine/block, there shall be no restriction on the sale and/ or utilisation of coal, including captive consumption, sale to affiliates, coal gasification, coal liquefaction and export of coal. The last date for purchase of tender document after payment of a fee of Rs 5 lakh per mine/ block is January 9, 2021. "Interested and eligible companies can register themselves on the above website. On successful registration, eligible companies will obtain Login ID and password necessary for participation in the tender process," the notification said.

The backdrop

Addressing a press conference on the last day of the auction of commercial coal mines in November, Union Minister for Coal Pralhad Joshi had said that the mines which received single bids will also be bid out immediately. In the previous round, 19 out of 38 mines were successfully bid out to private entities like Hindalco, Vedanta, Adani Enterprises, Aurobindo Realty and Infrastructure, Yazdani International, EMIL Mines and Mineral Resources, Andhra Pradesh Mineral Development Corporation, among others. 

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