Coal Ministry Initiates 8th Round of Commercial Mine Auctions Today

The Coal Ministry is set to kick off the 8th round of commercial coal auctions on Wednesday, presenting a total of 39 blocks for bidding.

This round will see the offering of 35 coal mines, including 11 under the Coal Mines (Special Provisions) Act and 24 under the Mines and Minerals (Development and Regulation) Act. Of these, 14 coal mines are fully explored, while 21 are partially explored. Additionally, four coal mines, including one CMSP coal mine and three MMDR coal mines, are being offered under the second attempt of round seven of commercial coal auctions, with one fully explored and three partially explored.

The commercial coal mining sector opened in 2020, with the inaugural auctions launched by the Prime Minister on June 18, 2020. Since then, the Ministry has conducted seven rounds of commercial coal mining auctions, resulting in the auctioning of 91 mines with a peak rated capacity (PRC) of 221 Million Tonnes per annum (MTPA).

To enhance interest and participation, the Ministry has introduced various initiatives. The mine boundaries have been strategically determined to eliminate bottlenecks and make the mines more appealing to potential bidders. Moreover, the Ministry will provide 'Drone Pictography' of each mine as part of the mine dossier to benefit bidders.

In the commercial coal mine auctions, there are no restrictions on the sale and/or utilization of coal. Additionally, the eligibility criteria have been eliminated, with no technical or financial eligibility requirements for participating in the coal mine auctions.

To streamline the process, the Coal Ministry has developed a portal called the 'Single Window Clearance System' to facilitate clearances and approvals for successful bidders. A Project Monitoring Unit (PMU) has also been appointed to guide bidders in obtaining various clearances.

HBL