1 min read.Updated: 10 Jun 2021, 08:55 PM ISTLivemint
Starting form this tranche, the government is introducing a rolling auction mechanism ‘wherein any un-auctioned mine shall remain available for auction on the portal, with more mines being added as and when available’
In the largest ever coal mine auction, India is bidding out 67 mines with a total resource base of 36 billion tonnes of fossil fuel in the second tranche of commercial coal mine auctions.
Also, starting form this tranche, the government is introducing a rolling auction mechanism “wherein any un-auctioned mine shall remain available for auction on the portal, with more mines being added as and when available," said M. Nagaraju, additional secretary in the union coal ministry, and the nominated authority for these auctions in a ministry’ statement on Thursday.
India has the world’s fourth largest reserves and is the second-largest producer of coal. With global shift to green energy to address growing environmental concerns, the Indian government is trying to harness coal reserves within the next three decades.
“We are offering 67 mines with a total resource of almost 36 bn and explored mines PRCs of about 150 million tonnes (mt) during 2nd tranche auctions of coal mines for commercial mining. This is the biggest ever offer of coal mines in the country," Nagaraju added in the statement.
Of the 67 blocks being auctioned, while 37 are fully explored, the balance 30 have been partially explored. These mines are spread across Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Maharashtra and Andhra Pradesh.
“The commencement of sale of tender document started from 25th March 2021 and the bid due date is 24th June 2021," the statement said.
The two-stage auction process allows bidders to quote the percentage revenue share over the reserve price. Besides there will be no restriction on the sale and utilization of coal from the mines. Earlier, blocks were allocated to companies on payment of fixed amounts per tonne.
"The auction shall be held online through a transparent 2 stage process. Key highlights of this auction process 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, optimized payment structures, efficiency promotion through incentives for early production and use of clean technology, flexible operating terms etc.," the statement added.