Coal block auction for commercial mining is said to generate revenue of around Rs 20,000 crore/year on a capital investment of Rs 33,000 crore. 38 coal blocks are currently under auction for commercial mining. Capital investment has been calculated at Rs 150 crore per million tonnes per annum (MTPA) for PRC, including evacuation.
On the government’s claim made earlier that the auction of blocks will also lead to job creation for more than 2.8 lakh people, an official said employment generation is calculated considering output per employee “to be 5,000 tonne/annum, 30% leaves.” Approximately 30% manpower, will be engaged in associated infrastructure such as washeries, railway sidings etc and the indirect employment is three per one direct employment, the official added.
Vedanta, JSPL, Adani Enterprises, Hindalco Industries, JSW Steel and Nalco are among the 42 companies that have submitted bids for 23 coal blocks that were put up for auction under commercial mining.
“A total of 76 bids have been received for 23 coal mines. A total of 42 companies have submitted their bids in the auction process,” the coal ministry had stated earlier.
The highest number of bids (seven) were submitted by Adani Enterprises, followed by Hindalco Industries and JMS Mining (five each). The Andhra Pradesh Mineral Development Corporation, Aurobindo Reality and Infrastructure, and EMIL Mines and Minerals Resources submitted four bids each. Vedanta Ltd submitted three bids, Jindal Steel and Power Ltd (JSPL) submitted two, JSW Steel and Nalco one each, among others.
Of the total 76 bids, the highest number of bids were made for Gotitoria (East) and Gotitoria (West) and Gare Palma IV/7 coal blocks (eight bids for each), followed by six bids each for Brahmadiha and Urma Paharitola mines.
The ministry had said two or more bids have been received for 19 coal mines. Bids will be evaluated by a multi-disciplinary technical evaluation committee and technically qualified bidders would be shortlisted for participation in the electronic auction to be conducted on MSTC portal from October 19.
