- PPI Staff
New Delhi: The government of India intends to put out 65 coal mines capable of producing 36 billion tonnes of coal. This auction is the largest ever auction, consisting of 6 coking mines and 37 fully explored and 30 partially explored ones. The Ministry of Coal held a stakeholders consultation on the ongoing second tranche of auction of coal mines for sale of coal (commercial mining), organized by FICCI.
Mr M Nagaraju, Additional Secretary, Ministry of Coal, today said the auction would usher in economic growth and prosperity in the coal belts and the respective states and urged investors to participate in auction.
Ms Santosh, DDG, Ministry of Coal, gave a presentation on the National Coal Index and the changes in pricing and payments based on market based mechanisms which have ushered in an era of transparency in the sector.
The auctions process began on 18th June 2020 and 19 coal mines were auctioned in the first tranche. The 2nd tranche auction process was launched on 25th March 2021.
The second stakeholder held on June 15, 2021 saw participation of leaders in coal, mining and metal business, mining equipment manufacturers, banks and financial institutions and mine developers and operators.
The auction would be held through a transparent online, 2 stage process, while the auction process would include market linked mechanism where bidding is based on Percentage Revenue Share, National Coal Index linked payments, no restriction over mining experience, optimized payment systems and flexible operating terms, among others.
The Ministry of Coal is already implementing the rolling auction mechanism to expedite allocation, bring in greater transparency and better availability of mines.