In a significant development, the Ministry of Coal’s auction process for the sale of coal mines has witnessed a robust participation from various companies. The eagerly anticipated auction, which commenced on March 29, 2023, saw the submission of Technical Bids from interested parties for 103 coal and lignite mines. Today, on June 28, 2023, the Technical Bids were opened in the presence of bidders, both online and offline, marking a crucial milestone in the auction process.
The auction attracted a total of 35 bids under two tranches, namely the 7th tranche and the 2nd attempt of the 6th tranche, reflecting the high level of interest in acquiring these coal mines. The bids were received for a diverse range of coal mines, including both fully explored and partially explored ones. Out of the 17 coal mines included in the 7th tranche, nine are partially explored, while the remaining mines have undergone full exploration.
It is noteworthy that two or more bids were received for seven coal mines, indicating the competitive nature of the auction process. These seven mines attracted a total of 24 bids, both online and offline. Additionally, 10 coal mines received single bids, further illustrating the widespread interest among bidders.
Among the coal mines offered for auction, 16 are categorized as non-coking coal mines, while one is a coking coal mine. The cumulative peak rated capacity (PRC) of the fully explored coal mines stands at an impressive 47.80 million tonnes per annum (MTPA).
In the 2nd Attempt of the Sixth tranche, five coal mines were put up for auction, and a single bid was received for one of the fully explored non-coking coal mines. The PRC of this particular coal mine is estimated at 4 MTPA.
Auction process also witnessed the active participation of five public sector companies, further emphasizing the significance of these coal mines in the industry. Overall, a total of 22 companies submitted their bids, both online and offline, demonstrating the strong competition and enthusiasm among industry players.
The submitted bids will now undergo a comprehensive evaluation process by a multidisciplinary Technical Evaluation Committee. The committee will assess the bids and shortlist the Technically Qualified Bidders who will proceed to the next phase of the auction. The electronic auction is set to be conducted on the MSTC portal in the near future.
Successful completion of the auction process will not only facilitate the transfer of these coal mines, but also contribute to the development and growth of the coal and energy sectors in the country. The Ministry of Coal remains committed to promoting transparency and fair competition in the auction process, ensuring that the best-suited bidders are selected to harness the potential of these valuable coal resources.
The commercial coal mine auctions have garnered significant attention and are expected to generate substantial interest from both domestic and international players in the coal industry. The outcome of the auction will play a pivotal role in shaping the future landscape of the coal mining sector in India.
