Coal Ministry launches 5th tranche of auctions; offers 18 new mines.

The Coal Ministry, recently offered a total of 122 mines, which includes 18 new ones, under the fifth tranche of commercial auction of coal mines. The government has cautioned 42 mines so far The commencement of sale of tender documents will start from Wednesday, and the details of mines, auction terms and timelines can be accessed on the MSTC auction platform. The auction will be held online through a transparent two-stage process, on the basis of Percentage Revenue Share. SBI Capital Markets is the sole transaction advisor to the Coal Ministry for the commercial coal mine auction. It has devised the methodology and is assisting the Ministry in the auction. In terms of break-up, 109 coal mines are under the 15th tranche of Coal Mines (Special Provisions) Act, 2015, and 5th Tranche of Mines and Minerals (Development & Regulation) Act, 1957. While another four mines are under the second attempt of 14th tranche of Coal Mines (Special Provisions) Act, 2015 and second attempt of 4th tranche of Mines and Minerals (Development & Regulation) Act, 1957. An additional nine coal mines as part of the second attempt of the 13th tranche of Coal Mines (Special Provisions) Act and second attempt of the 3rd tranche of Mines and Minerals (Development & Regulation) Act. The Ministry informed that of the 109 mines on offer, 59 are fully explored and 50 are partially explored mines. These are spread across 11 coal and lignite-bearing States of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Rajasthan, Tamil Nadu, Bihar and Telangana. Coal & Mines Minister Pralhad Joshi said that along with ensuring energy security of the country, this will provide employment opportunities to more than 1.17 lakh people. The success of these auctions indicate that right steps are being taken by the government to provide further momentum to the growth of the coal sector. The Ministry of Coal is on the journey to reform the sector and unlock its potential. The recent reforms initiated in the coal sector will further strengthen the vision of Aatmnirbhar Bharat, he added. The list of mines has been finalised after detailed deliberations. The mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40 per cent or have a heavily built-up area, etc. have been excluded from the auction, the Ministry said.

HBL