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regular-article-logo Sunday, 26 May 2024

Government re-invites four coal blocks for bidding

Auction for commercial mining opens sector to private players

Our Bureau, Agencies New Delhi Published 13.12.20, 02:37 PM
The Ministry of Coal has issued a notice inviting the blocks for tender.

The Ministry of Coal has issued a notice inviting the blocks for tender. File picture

The Ministry of Coal has invited bids for four coal blocks once again, whose tender process was nullified in the first round of auction for commercial mining earlier. This was done as the number of technically qualified bidders for each mine was just one.

Three of the four coal blocks are in Odisha, while the other one is in Jharkhand.

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“The nominated authority conducted the first attempt of the 11th tranche of auction under CM(SP) Act and 1st tranche of auction under the MMDR Act of identified coal mines/ blocks vide tender document dated June 18, 2020,” the coal ministry said in a notice inviting tender.

It added that as the number of technically qualified bidders for the tender was less than 2 for Chendipada, Chhendipada-II and Kuraloi (A) North coal mines in Odisha and Seregarha block in Jharkhand, the process was annulled.

The fully explored blocks have an annual peak-rated capacity of 52 million tonnes (MT).

“The nominated authority is initiating the second attempt of auction of these coal mines with the same terms and conditions as in the first annulled attempt of auction,” the ministry said in its notice.

The auction of blocks for commercial mining has opened India's coal sector to private players.

In the first-ever auction for commercial coal mining, a “fierce competition” was witnessed.

Earlier, Coal Minister Pralhad Joshi said 19 auctioned mines will generate total revenues of around Rs 7,000 crore per annum and create more than 69,000 jobs once they are operationalised.

In June, Prime Minister Narendra Modi launched the auction process for 41 coal blocks for commercial mining. Some of the large corporate groups that have bagged blocks include Adani Enterprises, Vedanta, Hindalco Industries and Jindal Power.

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