The central government today launched 67 mines for sale at the second end of the auction for commercial coal mining.
This is the largest number of mines proposed at a particular end of the auction since the auction began in 2014.
Union Coal Minister Pralad Joshi started the auction process at a program in New Delhi.
Out of the total 67 mines provided by the Ministry of Coal, 23 mines are under CM (SP) Act and 44 under MMDR Act. The offered coal mines are a mix of small and large reserves, coking and non-coking mines and full and partial exploration mines spread across six Chhattisgarh, Jharkhand, Orissa, Madhya Pradesh, Maharashtra and Andhra Pradesh.
“We are making coal a driver of economic activity in the country. There is a huge opportunity that the Indian coal sector is offering. Therefore, I invite investors to be part and parcel of a lot of unforeseen coal reserves in the country. Grow your business and take India on the path of development, ”Joshi said as he started the auction process.
“Commercial coal mining will bring in new investments, create a lot of employment opportunities and boost socio-economic development in the coal-bearing states. A market-based coal economy will help turn the nation into a coal-fired powerhouse. Yogi added.
The Coal Minister further said that with a view to the success of the past, the government is moving towards adopting a ‘rolling auction’ process to conduct future auctions. Coal is the first mineral resource where the rolling auction process is being implemented where a pool of coal blocks will always be available for auction.
“Through the rolling auction, we will upload a comprehensive list of mines with basic technical data and bidders can submit their preferences to be included in the next part of the auction. This will be an uninterrupted process and will speed up the auction setup. In addition, it will help bidders better plan and increase transparency in the system. “Says Joshi.
Joshi further said that in addition to promoting commercial coal mining, the government is also considering revising the existing e-auction system of Coal India Limited and keeping CIL’s various e-auction windows in one. This will help move towards a price for a coal grade. An e-auction window will help facilitate coal sales at market-set prices and promote transparency.
Amitabh Kant, CEO NITI Commission and Secretary (Coal) Anil Kumar Jain were present on the occasion.
“The launch of commercial coal mining is the most revolutionary and progressive step taken in the country’s coal sector. It will bring top miners to India’s coal sector with the latest technology and cost competition. The Indian coal sector will make great strides in productivity and modernization. NITI CEO Yoga Amitabh Kant said in his speech.
“At this end of the auction, special emphasis has been placed on protecting the environment. In areas where forests are low, coal quality is good, mines are close to infrastructural facilities and rehabilitation and rehabilitation should be done in minimum time, Secretary (Coal) Anil Kumar Jain said in his address that more coking coal mines should be provided to import coking coal from India. Gets.
Notably, 19 mines were successfully auctioned for the first time in the commercial coal mining auction held last year with premiums ranging from 9.5% to 66.75% by successful bidders. Agreements between the Ministry of Coal and successful bidders were signed in January this year. States will bring about Rs. 4,000 / -. Ann000 crore revenue income from this auction is considered to produce 5 million tons of top rated capacity per year.