Potential coal mine buyers seek lower auction thresholds

Kolkata: Potential buyers of coal mines have urged the Centre to set lower auction thresholds to attract viable bids and offer assets that already have green clearances to help speed up mine development and extraction of the solid fuel.

The Centre’s discussion paper on coal block auctions suggests bidders offer to share at least 4% of revenue from a block. For more than four bidders, up to three parties will be barred from further participation, while the highest initial offer will be the floor for the next stage, in which bids will be accepted in multiples of 1% until 10%, and thereafter in multiples of 0.50%.