New Delhi: The second attempt of auction of 11 coal mines for commercial mining by the Ministry of Coal resulted in auctions of two mines that received multiple bids.
With the conduct of this auction, Ministry of Coal has successfully auctioned 30 mines till date (comprising of 23 fully explored mines and 7 partially explored mines) from the launch of first tranche in June 2020.The second attempt of auction of the 11 coal mines was launched on September 27, 2021 and bids were received for 4 mines.
Also read: Second attempt of auction of 11 coal mines very soon, says Minister
The results of the auction are as under:
Total peak rated capacity auctioned till date is 63.17 MTPA with average premium of approximately 27.78% against the floor price of 4% indicating strong demand for coal mines in market. These mines are expected to generate total annual revenue of ~Rs.8158.03 Crore and estimated employment of 85,406.
According to the Ministry, commercial coal mine auction has witnessed strong competition and several first-time participants from the ‘non-end user’ category like Real Estate, Infrastructure, Pharma, have also emerged as successful bidders in the auction after removal of ‘End Use’ criteria from the bidding process. The Ministry expects this to bring in more efficiency and technological advancement in the mining industry.
– global bihari bureau
