Coal news and updates

CMPDI receives 2 bids in competitive bidding, fate of blocks uncertain

June 27: The fate of the three coal blocks put for competitive bidding looks uncertain as CMPDI has received only two bids for one block and is awaiting direction from the Coal Ministry (MoC) to go ahead or scrap the auction, informed sources said.

“Only two companies have submitted bids for one block – Andal Babuisol. For the other two blocks – Jhirki & Jhirki (West) and Tokisud-II – there has not been any bid,” the sources said.

Incidentally, around 40 Indian companies had bought the bid document, expressing interest to take part in the auction. The last date for submission of bids was June 25.

Asked if there would be retendering, the sources said that the outcome of the bidding has been intimated to the Ministry of Coal (MoC).

“Now the ministry has to take a call whether to go ahead with the process or think otherwise,” they said. There, however, was indication that the ministry may scrap the auction altogether.  

In February 2014, CMPDI had announced that three blocks would be auctioned by competitive bidding for specified end users. Accordingly, under Rule 3 of the Auction by Competitive Bidding of Coal Mines Rules, 2012, the aforesaid blocks were offered for auction by competitive bidding for mining to companies engaged in production of steel, cement and sponge iron.

While Jhirki & Jhirki (West) was earmarked for steel (blast furnace), Andal Babuisol was demarcated for sponge iron and Tokisud-II was to be allocated for cement. The three blocks, located in Jharkhand and West Bengal, have approximate geological reserves of 499.443 million tons.

The first deadline for bid submission was May 28 which was later extended to June 25 at the behest of the companies which had bought bid document.