News Update

67 blocks on offer in 2nd tranche of commercial coal mine auction

By TIOL News Service

NEW DELHI, JUNE 11, 2021: THE Ministry of Coal on Thursday organised the first in a series of two stakeholders’ consultations on the second round of auctions for commercial coal mining in which 67 blocks with a total resource base of 36 billion tonne of fossil fuel are up for sale.The virtual meeting was attended by leading players from the coal and mining business, equipment manufacturers, Mine Developers and Operators (MDOs) and financial institutions.

This is the biggest ever offer of coal mines in the country,” said Mr M Nagaraju Additional Secretary in the Coal Ministry. The offers, which are in almost all coal-bearing states, will allow the industry to pick the relevant and useful mines depending on their requirements.

Starting from this tranche, the government is introducing a rolling auction mechanism where “any un-auctioned mine shall remain available for auction on the portal, with more mines being added as and when available.”

We are offering 67 mines with a total resource of almost 36 billion and explored mines PRCs of about 150 million tonnes during the second tranche auctions of coal mines for commercial mining,” Mr Nagaraju said.

The government has put 67 mines on the block, of which 37 are fully explored while the balance are partially or regionally explored.

The second tranche auction is expected to bring in global best practices which will lead to the development of a vibrant coal market, boosting economic growth and employment generation in the country.

The auction shall be held online through a transparent two-stage process. Key highlights of the auction process are are market-linked mechanism wherein bidding shall be based on Percentage Revenue Share, National Coal Index-linked payments, ease in participation with no restriction for prior coal mining experience, optimised payment structures, efficiency promotion through incentives for early production and use of clean technology, and flexible operating terms.

The commencement of sale of tender document started from March 25 and the bid is due June 24.