Govt kick starts 7th round of commercial coal mine auctions, offering 106 mines for sale
2 min read 29 Mar 2023, 08:30 PM ISTThese mines that are being auctioned are spread across coal/lignite-bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Rajasthan, Tamil Nadu, and Bihar.
PremiumThe Coal Ministry on Wednesday launched the seventh round of auction of commercial coal mines. A total of 106 coal blocks are offered under the auction. SBI Capital Markets is the sole transaction advisor to the ministry for the commercial coal mines and is also assisting in the auction process.
According to the ministry statement, of the total 106 coal mines, 101 mines are being put up for auction under the 17th/ 7th tranche under CMSP/ MMDR Act and 5 coal mines are being offered under the 2nd Attempt of 16th/ 6th tranche under CMSP/ MMDR Act.
Further, of the 101 coal mines, 32 are new coal mines and 69 mines are being rolled over from earlier tranches.
Additionally, five coal mines under the 2nd attempt of the 16th/ 6th Tranche -- are also being launched where single bids were received in the first attempt.
These mines that are being auctioned are spread across coal/lignite-bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Rajasthan, Tamil Nadu, and Bihar.
Coal ministry has also inked agreements for 29 coal mines which were auctioned under the 6th round of commercial coal mines auction. The cumulative PRC of 29 coal mines is 74 MTPA.
Upon operationalization, these mines will generate an Annual Revenue of ₹14,497 crore which is calculated at PRC of these coal mines. Also, it is expected to provide employment to about one lakh people.
The details such as mines, auction terms, timelines, etc. can be accessed on the MSTC auction platform.
The auction shall be held online through a transparent two-stage process, on the basis of Percentage Revenue Share.
Coal Secretary Shri Amrit Lal Meena and Additional Secretary & Nominated Authority M Nagaraju on Wednesday highlighted different initiatives undertaken by the ministry to ensure sustainable coal production.
He stated, the focus of commercial auctions is centered around competition, capital investment, use of latest technology, and enhanced participation.
Meanwhile, Coal, Mines & Parliamentary Affairs Minister Pralhad Joshi stated that with a 14 % increase, coal production is expected to touch the record figure of 880 million tonne this fiscal and offtake is likely to touch 900 million tonne.
Joshi disclosed that coal production exclusively from captive /commercial mines has crossed 100 million tonne for the first time. The minister said that "the coal sector is fully geared to meet the growing demand. All efforts are on to further enhance production and export of thermal coal by the year 2025-2026."
He called upon the private sector to participate more actively in coal mines auctions.
