Coal Ministry auctions two more coal mines; so far 30 mines commercially auctioned
These mines are expected to generate total annual revenue of ~Rs.8158.03 Crore and estimated employment of 85,406.
New Delhi: The Ministry of Coal had launched the 2nd Attempt to auction 11 coal mines for commercial mining on September 27, 2021, and bids were received for 4 mines. The auction was held for two mines that have received multiple bids. The results of the auction are as under:
Name of Mines
1. Lalgarh (North), (Jharkhand)
Preferred Bidder (Adhunik Power and Natural Resources Ltd.)
Initial Offer: 11.00%
Final Offer: 48.50
Annual Revenue Generated: Rs. 213.22 Cr.
2. Beheraband North Extn* (Madhya Pradesh)
Preferred Bidder (Auro Coal Private Ltd.)
Initial Offer: 8.50%
Final Offer: 9.50
Annual Revenue Generated: NA
*This is a partially explored coal mine and therefore, the PRC is not available for this mine. Hence, the annual revenue which will be generated from these coal mines cannot be calculated at present.
With the conduct of this auction, the 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. 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.
Commercial coal mine auction has witnessed strong competition and several first-time participants from the ‘non-end user’ category like Real Estate, Infrastructure, Pharma, etc., have also emerged as successful bidders in the auction, which is a positive sentiment shared by the industry after removal of ‘End Use’ criteria from the bidding process and is expected to bring in more efficiency and technological advancement in the mining industry.