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Coal ministry holds pre-bid meeting for 11th round of commercial mine auctions

The meeting, held under the chairmanship of Additional Secretary and Nominated Authority Rupinder Brar, witnessed the participation of 50 bidders and addressed queries related to the auction process.

New Delhi: The Ministry of Coal conducted a pre-bid meeting for the 11th round of commercial coal mine auctions, offering 27 coal mines. The meeting, held under the chairmanship of Additional Secretary and Nominated Authority Rupinder Brar, witnessed the participation of 50 bidders and addressed queries related to the auction process.

The auctions, launched on December 5, 2024, are part of the government’s initiative to commercialize coal mining and reduce import dependency. The offered mines include a mix of fully explored and partially explored blocks to attract diverse participants.

A detailed presentation on the auction process was delivered by the Transaction Advisor, SBI Capital Markets Limited, outlining the procedural and financial aspects. The technical advisor, CMPDIL, presented details about the coal mines, including borehole density, Peak Rated Capacity, and other technical specifications.

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During the meeting, the ministry clarified various queries raised by bidders regarding key aspects of the auction. These included bid security requirements, upfront payment mechanisms, rebate policies, and technical challenges associated with the mines. The ministry assured participants of its commitment to providing maximum support to encourage greater participation.

Bidders were advised to continue submitting queries to the Office of the Nominated Authority. The ministry emphasized that all efforts are being made to facilitate a smooth auction process. The deadline for bid submissions in this tranche is January 31, 2025.

The 11th round of auctions is part of the government’s ongoing reforms in the coal sector. These reforms aim to increase private sector participation and boost domestic coal production to meet the country’s growing energy demands.

The commercial coal mine auction process, introduced in 2020, allows private companies to mine and sell coal in the open market, marking a significant shift from the previous regime of allocation through coal linkages or captive usage. Since its inception, the process has seen multiple rounds of auctions with increasing participation.

The mines offered in this round are expected to generate revenue for the states through royalties, taxes, and employment generation while reducing the need for coal imports. Officials said the 11th round builds on the success of earlier tranches, aiming to attract both new and experienced players in the coal mining sector.