The designated authority under the Ministry of Coal has launched the second attempt at auctioning 11 coal mines for commercial mining. Of the 11 proposed mines, six are fully explored and five are partially explored.
These are the mines that were offered in the first attempt, launched on March 25 this year, but received only one bid, the Coal Ministry said in a statement on Monday.
“The Nominee Authority of the Ministry of Coal has today initiated the second attempt of auction process for eleven coal mines (4 mines under tranche 12 of CM (SP) Act and 7 mines under tranche 2 of MMDR Act) scheduled for sale today. of coal in accordance with the rules laid down under these Acts,” it said.
The ministry said the auction of these 11 mines would be conducted online “through a transparent two-stage process, on the basis of percentage revenue share”.
“The salient features of the auction process include introduction of National Coal Index, ease of participation without any restriction for prior coal mining experience, complete flexibility in utilization of coal, optimized payment structure, efficiency enhancement through incentives for early production and clean involves the use of coal technology.” added it further.
The sale of tender document will start from 27 September 2021.
The Coal Ministry had earlier said that it has tied up with eight successful bidders for auctioning the second tranche of coal mines for commercial mining.
The ministry had said that eight coal mines that have been successfully auctioned have a revenue share of between 6 and 75.5 per cent, with an average revenue share of 30 per cent.
The electronic auction of these mines was done in the first week of August this year.
In the first attempt at auction under the 11th tranche of auction under the CM (S) Act 2015 and the first tranche of auction under the MMDR Act 1957, 19 out of 38 coal mines were successfully auctioned.
Out of the remaining mines, four coal mines, which had received a single bid in the first attempt, were put up for re-auction by the Ministry of Coal in the second attempt with the same terms and conditions, but with the highest initial offer received in the first. The auction attempt as the lowest price for the second attempt was canceled.
The Coal Ministry had initiated the auction process of 38 coal mines in the first phase of auction for sale of coal for commercial mining.
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