Team News Riveting
New Delhi, December 16
Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi has launched the fourth tranche of auction of 99 coal mines including 24 new mines in a function here today.
Launching the latest tranche, the Minister called upon the investors who have already completed successful bidding of coal mines to start production at the earliest for greater self-reliance in this sector. The Minister also urged the officials to identify more coal blocks for auctioning.
Joshi further pointed out that at least for next 30 to 40 years coal will continue to be crucial in India’s energy sector. The Minister urged investors to step up participation in the fully transparent auction process evolved by the Coal Ministry.
After successful auction of 28 coal mines in the first two tranches and upon receipt of 53 bids for 20 coal mines under Tranche 13 of CM(SP) Act and Tranche 3 of MMDR Act, Ministry of Coal has now launched the auction process of 24 new coal mines (9new mines under Tranche 14 of CM(SP) Act and 15 new mines under the Tranche 4 of MMDR Act). With coal mines rolling over from third round of commercial auctions and 2nd attempt of second tranche of commercial auctions, there shall be a total of 99 coal mines on offer.
Of these 99 mines on offer, 59 are fully explored mines and 40 are partially explored. These mines are spread across eight coal bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh and Telangana.
The list of mines has been finalized post detailed deliberations and mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40%, heavily built-up area etc. have been excluded.
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. Further incentives are being contemplated by the Ministry of Coal with focus on sustainability.
The commencement of sale of tender document shall start from 16th December 2021. Details of the mines, auction terms, timelines etc. can be accessed on MSTC auction platform. The auction shall be held online through a transparent 2 stage process, on the basis of Percentage Revenue Share. This round of auction will be the 14th Tranche of auction under CMSP Act and 4th Tranche of auction under MMDR Act.
SBI Capital Markets Limited, sole Transaction Advisor to Ministry of Coal for the commercial coal mine auction, had devised the methodology and is assisting the Ministry of Coal in conduct of the auction.
A total of 99 coal mines of which 35 coal mines are under 14th Tranche of auction under CMSP Act and 64 coal mines are under 4th Tranche of auction under MMDR Act. Out of these 99 coal mines, 24 are new coal mines whereas the remaining 75 coal mines are roll over mines from the earlier round of auctions.
Dr.Anil Kumar Jain, Secretary Ministry of Coal, Additional Secretaries Vinod Kumar Tiwari, M. Nagraju and other senior officials of the Ministry participated in the function.
