Guwahati: The coal ministry will hold an investors' conclave in Mumbai on December 1, in order to increase bidder participation in the commercial auction of coal mines.
There are no technical or financial requirements for participation in commercial auctions, thus numerous bidders who weren't previously involved in coal mining became successful bids and received coal mines, according to the Ministry of Coal.
Eknath Shinde, the chief minister of Maharashtra, deputy chief minister Devendra Fadnavis, minister of state for coal, mines, and railroads Raosaheb Patil Danve, minister of mining for Maharashtra Dadaji Bhuse, coal secretary Amrit Lal Meena, and mines secretary Vivek Bhardwaj will all be present at the high-level meeting, which will be presided over by coal minister Pralhad Joshi.
According to the Ministry of Coal, after successfully selling 64 coal mines in the first five tranches, the Ministry of Coal started the process for selling 133 mines in the sixth round of commercial auctions, of which 71 are new mines and 62 are rolling over from earlier tranches held in November 2022.
Eight coal mines were also offered for auction in the 5th round of commercial auctions on the second try after just one bid was submitted on the first.
Following careful deliberation, the list of mines has been finalised. Mines that are located in protected regions, wildlife sanctuaries, vital habitats, locations with a high percentage of forest cover, densely populated areas, etc. have been eliminated. In order to increase bidder interest and involvement in certain coal blocks, the block borders of some coal mines that included areas of dense habitation, high green cover, or important infrastructure, etc., have been adjusted based on feedback from stakeholder consultations.
"Key characteristics of the auction procedure include decrease in upfront fee and bid security amount, authorization to surrender part of the coal mine in case of partially explored coal mines, introduction of National Coal Index and National Lignite Index, ease of participation with no entry barriers, complete flexibility in coal utilisation, optimal payment structures, efficiency promotion through incentives for early production and use of clean coal technology," Coal Ministry said.
Beginning on November 3, the sale of the tender documents was open. On the MSTC auction portal, you may obtain information on the mines, the rules of the auction, deadlines, etc. The auction will be conducted online in two stages with complete transparency, according to a percentage income split.
The auction is being conducted with assistance from SBI Capital Markets Limited, the Ministry of Coal's sole transaction adviser for the commercial coal mine auctions.
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