“The Nominated Authority of the Ministry of Coal, has launched today the second attempt of auction process for eleven coal mines (4 mines under the Tranche 12 of CM(SP) Act and 7 mines under the Tranche 2 of MMDR Act) earmarked for Sale of Coal in accordance with the rules prescribed under these Acts," the coal ministry said in a statement.
This comes in the backdrop of a total of 34 bids received for 19 of the 67 coal mines in Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Maharashtra and Andhra Pradesh that were offered in the second tranche of India’s commercial coal mine auctions.
“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 launched on March 25 this year and had fetched single bids," the statement added.
The country’s coal requirement is expected to go up to 1,123 million tonnes (mt) by 2023 from the present level of 700 mt. 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.
“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 introduction of National Coal Index, ease in participation with no restriction for prior coal mining experience, full flexibility in coal utilisation, optimized payment structures, efficiency promotion through incentives for early production and use of clean coal technology," the statement said.