Commercial coal mining: New players & a state-run organisation win coal blocks on Day 2

• The Andhra Pradesh Mineral Development Corporation won the Brahmadiha coal block in Giridih district of Jharkhand

• The Brahmadiha coal block saw the most aggressive bidding with the Andhra Pradesh Mineral Development Corporation offering 41.75 percent revenue sharing

New Delhi: On Day 2 of e-auction for commercial coal mining, Sarda Energy and Minerals secured the Sahapur (West) coal block in Umaria and Shahdol district of Madhya Pradesh (MP) and the Andhra Pradesh Mineral Development Corporation won the Brahmadiha coal block in Giridih district of Jharkhand, said the Ministry of Coal on Tuesday. While EMIL Mines and Minerals Resources secured the Bandha coal block, Stratatech Mineral Resources made the highest bid for Dhirauli coal block in Singrauli district of Madhya Pradesh (MP), the statement said. 

The Brahmadiha coal block saw the most aggressive bidding with the Andhra Pradesh Mineral Development Corporation offering 41.75 percent revenue sharing. Next up was Sahapur (West) coal block, where Sarda Energy and Minerals offered 26 percent revenue sharing.

ALSO READ: Who are the winners on Day 1 of e-auction process?

The total geological reserves of the mines put up for auction are ~1,085 MT with a cumulative PRC of ~9 MTPA, said the Ministry of Coal. The e-auction witnessed strong competition amongst bidders with all mines attracting good premiums over the reserve price, said the statement.

Commercial coal mining: Next round of e-auction

The Ministry of Coal will hold the next round of e-auction for coal mines on November 4. The coal mines on offer include Gare Palma IV/1 coal block in Raigarh district of Chhatisgarh, Gotitoria (East) & Gotitoria (West) coal mine in Narsinghpur district of Madhya Pradesh (MP) and Urtan North coal mine in Anuppur district of MP. The bidding process would open at 11 am and close at 1 pm.

The backdrop

The Coal Ministry, in association with FICCI, launched the process for auction of these coal mines on June 18. The decision of opening up the coal sector for commercial mining was part of a series of announcements made by Finance Minister Nirmala Sitharaman under the Aatmanirbhar Bharat Abhiyan. The Centre amended the Coal Mines (Special Provisions) Act, 2015, in May to simplify the auction process and attract investors to the sector. The amendment removed the requirement for miners to use coal only for captive purposes and allowed commercial mining by private players. The step is aimed at raising the domestic production of coal in order to cut India's dependence on imports.  

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