Govt launches 2nd attempt for auction of 11 coal mines

• Out of these 11 mines, six are fully explored and five are partially explored
• These were the mines which were offered in the first attempt of tranche 2 of commercial coal mine auction launched earlier on March 25 and had fetched single bids

New Delhi: The Ministry of Coal has launched the second attempt of auction process for 11 coal mines on Monday. Four mines are on offer under the tranche 12 of CM(SP) Act and seven mines are under the tranche 2 of commercial coal mine auction launched earlier this year. Out of these 11 mines, six are fully explored and five are partially explored. These were the mines which were offered in the first attempt of tranche 2 of commercial coal mine auction launched earlier on March 25 and had fetched single bids.

Coal mine auction will be a 2-stage process

The auction shall be held online through a transparent two-stage process on the basis of percentage revenue share. Key features of auction process include the introduction of 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.

The commencement of the sale of tender document has started from Monday. Details of the mines, auction terms, timelines etc. can be accessed on MSTC (https://www.mstcecommerce.com/auctionhome/coalblock/index.jsp) auction platform.

Backdrop

During the first attempt for commercial auction of coal mines under tranche 2, a total of 34 bids were received for 19 of the 67 coal mines in Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Maharashtra and Andhra Pradesh. The government had earlier said that the mines that received single bids during the first attempt will be put on auction under a second attempt again.

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