Coal ministry conducts auction of 10 more coal blocks | The Financial Express

Coal ministry conducts auction of 10 more coal blocks

E-auction for eight coal mines has been conducted on September 13, and the auction for the remaining two coal mines were conducted on Wednesday

Coal ministry conducts auction of 10 more coal blocks
According to a coal ministry statement, total peak rate capacity of mines put for auction has been estimated at 39.31 million tonne (mt) per annum

The coal ministry has conducted forward e-auctions of 10 coal mines, following technical evaluation of the bids submitted for commercial coal mining. E-auction for eight coal mines has been conducted on September 13, and the auction for the remaining two coal mines were conducted on Wednesday.

According to a coal ministry statement, total peak rate capacity of mines put for auction has been estimated at 39.31 million tonne (mt) per annum.

The ministry till now has auctioned 43 coal blocks, with peak rate capacity of 85.54 mt per annum (mtpa).

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The Union government, to enhance the country’s coal production, started commercial auction of coal blocks on a revenue-sharing mechanism. It has allowed sale of excess coal, amending the Mineral Concession Rules of 1960. This was done with a view to allow sale of coal or lignite on payment of additional amount to the state government by the lessee of a captive mine. The lessee can sell up to 50% of its total production from the captive mine in a fiscal in the open market, after meeting the requirement of the end-use plant linked with the mine. This has been applicable for both private and public sector captive mines.

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To expedite the process of conducting auction and for carrying out more round of auctions after completion of the electronic auction process of a tranche, the next tranche of auction would be launched for the mines, where no bid or a single bid was received in the previous tranche of auction. A single-window clearance system has been launched to speed up operationalisation of coal mines through the unified platform, which will go through relevant application formats and will also process various approvals and grants.

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