Commercial Coal Mine Auctions Proven Transparent and Fair, States Coal Ministry

TFP Bureau, New Delhi, Nov 9, 2023: The Ministry of Coal has affirmed that the auctions for commercial coal mines have been carried out through a transparent mechanism, prioritizing various end-uses, such as power and non-regulated sectors, after the cancellation of 204 coal mines in 2014. This step aims to boost domestic coal production and reduce reliance on coal imports.

In 2020, a forward-looking policy for commercial mining was introduced to realize the goal of promoting and expanding the country’s coal industry. This policy also facilitates quick decision-making in the implementation of commercial coal mining. An Empowered Committee of Secretaries (ECoS), consisting of members from the Department of External Affairs, the Department of Legal Affairs, the Ministry of Petroleum and Natural Gas, and the Ministry of Coal, was established to ensure the effective execution of commercial coal mining.

In the case of less than two technically qualified bidders for a particular coal mine, the first auction attempt for that mine is annulled. Subsequently, the second auction attempt may be initiated with the approval of the Competent Authority. If only one bidder is present in the second attempt, the matter is referred to the ECoS to make the appropriate decision regarding the allocation of the mine. So far, 11 coal mines have been allocated to various bidders based on single bids after the second auction attempt, ensuring transparency and fairness.

Despite multiple offerings, numerous mines received no bids in the past seven rounds of auctions. The following coal mines have been allocated to successful bidders:

1. Kuraloi (A) North, Odisha, awarded to Vedanta Limited, with a final offer of 15.25%.
2. Gondbahera Ujheni East, Madhya Pradesh, awarded to MP Natural Resources Private Limited, with a final offer of 5.00%.
3. Tokisud Block II, Jharkhand, awarded to Twenty First Century Mining Private Limited, with a final offer of 5.00%.
4. Ashok Karkatta Central, Jharkhand, awarded to Moonpie Metaliks Private Limited, with a final offer of 6.50%.
5. Kasta (East), West Bengal, awarded to Jitusol Developers Private Limited, with a final offer of 5.00%.
6. Marki Barka, Madhya Pradesh, awarded to Birla Corporation Limited, with a final offer of 6.00%.
7. Barra, Chhattisgarh, awarded to Bharat Aluminium Company Limited, with a final offer of 5.00%.
8. Maiki North, Madhya Pradesh, awarded to Maiki South Mining Pvt. Ltd., with a final offer of 5.00%.
9. Alaknanda, Odisha, awarded to Rungta Sons Private Limited, with a final offer of 5.00%.
10. Choritand Tiliaya, Jharkhand, awarded to Rungta Metals Private Limited, with a final offer of 11.25%.
11. Sitanala, Jharkhand, awarded to JSW Steel Limited, with a final offer of 5.00%.

It is important to note that, apart from Gondbahera Ujheni East, all the other mines were auctioned to different bidders but at the same percentage revenue share. This demonstrates the transparency and fairness of the commercial coal mine auctions.

Since the first commercial mining auction in 2020, a total of 91 coal mines have been successfully auctioned within a span of three years across seven tranches. Out of these, nine mines have received all required permissions, and five have commenced production. In the fiscal year 2023, these commercial mines produced 7.2 million metric tons of coal.

The Ministry of Coal emphasized that no association has been identified between Cavill Mining Pvt Ltd and the Adani Group. Furthermore, the Ministry possesses the right to take appropriate actions as per the tender document’s Clause 5.12 if any misrepresentation is discovered at any stage of the auction process.

The coal block auctions, conducted in adherence to the Coal Mines (Special Provisions) Act and the Mines and Minerals (Development and Regulation) Act, follow an open, transparent, and accessible process for both the private and public sectors. The Ministry of Coal remains committed to adhering to the spirit of the Supreme Court’s orders on coal auctions, promoting fairness, and advancing coal production within the nation to achieve self-sufficiency.