Coal news and updates

Coal Ministry to start e-auction of 10 commercial coal mines from today

The Nominated Authority, Ministry of Coal has till now successfully auctioned 43 coal mines with PRC of 85.54 million ton per annum. (PTI)3 min read . Updated: 19 Sep 2022, 10:28 AM ISTLivemint

·         E-auction for eight coal mines will be conducted on 13th September and for two coal mines on 14th September, 2022. Total peak rate capacity (PRC) of the mines being put up for e-auction is 39.31 million ton per annum

The Ministry of Coal had invited bids for coal mines for commercial coal mining. Technical evaluation of bids has been completed and forward e-auction for 10 coal mines will be launched today.

"E-auction for eight coal mines will be conducted on 13th September and for two coal mines on 14th September, 2022. Total peak rate capacity (PRC) of the mines being put up for e-auction is 39.31 million ton per annum," according to a statement by the Ministry of Coal.

The Nominated Authority, Ministry of Coal has till now successfully auctioned 43 coal mines with PRC of 85.54 million ton per annum.

Earlier, the Union Government has said that it has taken the following steps to further enhance the production of the coal in the country.

Commercial Auction of coal on revenue share mechanism: Since Launch of auction of coal mines for commercial mining in June 2020, a total of 4 rounds of auction have been conducted in which total 292 coal mines were offered. In 3 rounds, 42 coal mines have been successfully auctioned. Further, in respect of 4th round of auction, bids were opened on 02.03.2022 and 2 or more bids have been received in respect of 5 coal mines and 6 coal mines have fetched single bids.

Allowed sale of excess coal production: The Ministry of Coal has amended Mineral Concession Rules, 1960 with a view to allowing sale of coal or lignite, on payment of additional amount to the State Government, by the lessee of a captive mine up to 50 percent of the total coal or lignite produced in a financial year, after meeting the requirement of the end use plant linked with the mine. Earlier this year, the Mines and Minerals (Development & Regulation) Act had been amended to this effect. This is applicable for both the private and public sector captive mines. With this amendment, the Government has paved the way for releasing of additional coal in the market by greater utilization of mining capacities of captive coal and lignite blocks, which were being only partly utilized owing to limited production of coal for meeting only their captive needs.

Rolling auction: In order to expedite the process for conducting auction and to carry out more rounds of auction in a year, a mechanism of rolling auctions of coal mines has been planned. Under this mechanism, upon completion of the electronic auction process of a tranche, the next tranche of auction would be launched for following mines:

Mines where no bid or only single bid was received in the previous tranche of auction (except for those mines where Ministry of Coal decides to go for second attempt of auction)