GG News Bureau
New Delhi, 15th Nov. The Ministry of Coal launched the eighth round of the commercial coal mines auction process, here today. Total of 39 coal mines are on offer.
Launching the auction virtually, Union Minister for Coal, Mines and Parliamentary Affairs Pralhad Joshi said that all efforts are on to stop coal imports by 2025-26.
He also stated that coal production from underground mines (UG) will be further scaled up to touch 100 million tonnes (MT) by 2030 by deploying mass production technology.
The mines being auctioned are spread across coal bearing States of Jharkhand, Odisha, Maharashtra, West Bengal and Bihar.
These mines come under the CMSP Act and MMDR Act. Out of 39 coal mines, four mines are being offered under 2nd attempt of 7th round under CMSP/ MMDR Act, where single bid were received in the first attempt.
Of the 35 coal mines being offered under 8th round, 16 coal mines are new ones and 19 mines are being rolled over from earlier tranches.
The Ministry of Coal has taken a series of reforms to ensure that the coal sector grows at a rapid pace and is able to meet the growing energy demand of country. For 8th round also, mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40%, heavily built-up area etc. have been excluded.
The block boundaries of some of the coal mines where there was presence of dense habitation, high green cover or critical infrastructure etc. have been modified for early development of coal mines.
Addressing the function Secretary, Ministry of Coal Amrit Lal Meena said that captive/commercial coal mines are contributing significantly to overall production.
He said that systematic surveys have been carried out before offering 39 mines for auction. For speedy evacuation of coal from mines, rail connectivity is being augmented and further added, Meena said.
Earlier, welcoming the guests and potential bidders, Additional Secretary and Nominated Authority of the Ministry, M Nagaraju emphasised on the need for further enhancing domestic coal production.
He highlighted that a series of reforms have been initiated by the Ministry recently. Domestic coal demand will be increasing in the coming decades too. Therefore, investment in the coal sector offers good returns, he added.
The commencement of sale of tender documents for auction shall start from today i.e., November 15, 2023. Details of the mines, auction terms, timelines etc. can be accessed on MSTC auction platform. The auction shall be held online through a transparent two stage process on the basis of percentage revenue share.
SBI Capital Markets Limited, the sole Transaction Advisor to the Ministry of Coal for the commercial coal mine auctions is assisting the Ministry in conducting the auction process.
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