Centre begins commercial coal auction process

The government on Wednesday said it is initiating the process of coal auctions and the first round of sale of blocks under commercial mining is proposed to be launched in the ongoing fiscal. The announcement comes days after the government approved an ordinance to ease mining laws that will allow global players to enter the coal sector. A company or a joint venture company incorporated in India is eligible to participate in commercial coal auctions, the coal ministry said in a statement.

“Moving ahead after the recent amendments in MMDR Act 1957 and the CMSP Act 2015, the Ministry of Coal is initiating the process for auction of coal mines for sale of coal. Expected to be held in multiple tranches, the first tranche is proposed to be launched in the current financial year,” it said. The bidders would be required to bid for a percentage share of revenue payable to the government. The floor price shall be four per cent of the revenue share, the statement added.