In a strategic move to enhance participation in the commercial auction of coal mines, the Ministry of Coal is set to organize a roadshow in Ranchi on January 16, 2024. The event will witness the presence of Shri Amrit Lal Meena, Secretary of the Ministry of Coal, as the Chief Guest, and Shri M Nagaraju, Additional Secretary & Nominated Authority, as the Guest of Honour.
Auctioning 70 Coal Mines:
The Ministry of Coal has initiated the auction process for a total of 70 coal mines, encompassing 39 mines under the 8th round of commercial auctions and 31 mines under the 9th round. These mines are located in the coal-bearing states of Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal. Among them, 27 are fully explored, and 43 are partially explored, with seven being coking coal mines and the rest non-coking coal mines. The selection process involved detailed deliberations, with exclusion criteria based on protected areas, wildlife sanctuaries, critical habitats, extensive forest cover, and heavily built-up areas.
Enhancements to Boost Bidders’ Interest:
To stimulate interest and participation, block boundaries of certain coal mines were modified after stakeholder consultations. This was done in areas with dense habitation, high green cover, or critical infrastructure. The modifications aim to encourage bidders and enhance their interest in these coal blocks.
Key Features of Auction Process:
The auction process introduces several key features to facilitate a streamlined and competitive bidding environment. Notable features include a reduction in upfront and bid security amounts, permission to relinquish part of partially explored coal mines, rebates in performance security for underground coal mines, no entry barriers for participation, flexibility in coal utilization, optimized payment structures, and incentives for early production and the use of clean coal technology. The online auction will be conducted transparently through a two-stage process based on the Percentage Revenue Share.
Details and Timelines:
The sale of tender documents for the 8th round commenced on November 15, 2023, and for the 9th round on December 20, 2023. Comprehensive details about the mines, auction terms, timelines, and other relevant information can be accessed on the MSTC auction platform.
SBI Capital Markets Limited, serving as the sole Transaction Advisor to the Ministry of Coal for commercial coal mine auctions, is actively assisting in the auction’s conduct.
Conclusion:
The roadshow in Ranchi and the ongoing auction process underscore the Ministry of Coal’s commitment to transparency, efficiency, and inclusivity in the commercial coal mine sector. With innovative features designed to attract bidders, streamline processes, and encourage responsible mining practices, the Ministry aims to optimize the utilization of coal resources for the nation’s development while ensuring environmental sustainability.