A total of 91 coal mines have been auctioned so far with expected annual revenue of over Rs 33,000 crore, an official statement said on Tuesday. Since the launch of commercial coal auctions in 2020, the transparent and fair auction process has been well-received by the industry, with no complaints received, it added. he sale of coal blocks.
From FY 2015 to FY 2020, a total of 24 coal mines were auctioned under captive auctions, the Ministry of Coal said in a statement.
“A total of 91 coal mines have been auctioned under commercial auctions, with expected annual revenue of more than Rs 33,000 crore and employment opportunities for over 3 lakh people once operationalized,” the Ministry said.
On February 19, the Ministry said it has received 40 bids through offline mode for the coal mines put for sale under the ninth round of commercial auction. The results for the latest round are yet to be announced.
The auction regime has not only unlocked vast opportunities within the coal industry but has also spurred sustainable development across various sectors, and government policies have empowered the companies to actively participate in coal block auctions, the statement said.
The Ministry further said that has been dedicated to fostering economic growth and energy security since the cancellation of 204 coal blocks in 2014 by the Supreme Court of India.
The Coal Mines (Special Provisions) Act, 2015 was enacted for auctioning the coal blocks to private sector and allotting the coal blocks to PSUs for specified end-use plants through fair and transparent process,
The reforms in the coal sector have yielded promising results, with notable increase in the number of private sector entities participating in coal block auctions, promoting healthy competition and injecting fresh investments and innovative technologies into the coal sector, thereby driving growth and development across the value chain.
“To ensure transparency and prevent cartel formation, a two-stage auction mechanism was adopted. Under the end-use specific regime, 24 coal mines were auctioned to the private sector and 53 coal mines were allotted to PSUs with specified end-use plants,” the ministry said.
In June 2020, the government launched auctions of coal mines without end-use restrictions, enhancing transparency and flexibility in the auction methodology, tender conditions, and auction process.
The commercial coal auctions in India witnessed participation from both the private and public sectors for the first time in history, with no technical or financial eligibility criteria, leading to wider participation from existing players as well as players who did not have any prior experience in mining sector.
