The government has set a minimum 4 per cent revenue share as the floor price for the commercial coal mining auction process. The first round of the auction will be held in the current fiscal.
A company or a joint venture company incorporated in India is eligible to participate in commercial coal auctions, according to the discussion paper put out by the coal ministry.
The ministry has initiated the auction process by releasing a list of 74 mines with over 22,000 million tonnes (mt) of reserves identified for commercial mining, including about 10 mines with reserves upwards of 500mt. These mines are likely to generate interest from Indian and global firms such as Adani Group, JSW Energy, Peabody, BHP Billiton and Rio Tinto.
