Ministry of Coal to Initiate 8th Round of Commercial Coal Mines Auctions on November 15
- 39 Mines from Five States to be Offered in Auction, Marking Another Stride Towards Atmanirbhar Bharat
TFP Bureau, New Delhi; Nov 14, 2023: The Ministry of Coal is set to launch the 8th round of auctions for Commercial Coal Mines on November 15, 2023, aiming to propel the coal sector and contribute to India’s self-reliance in coal production.
Since the initiation of Commercial Coal Mining in 2020, with the historic launch by Prime Minister Narendra Modi on June 18, 2020, the Ministry of Coal has conducted seven successful rounds of auctions, resulting in the auctioning of 91 mines with a peak rated capacity of 221 million tons per annum. The amendments in mineral laws have played a pivotal role in fostering a fair environment for both public and private sector players, enabling auctions without restrictions on end-use.
The introduction of Commercial Coal Mining has brought forth significant advantages, fostering healthy competition, boosting government revenue, and enhancing coal supply through private participation. Importantly, coal-rich states have generated substantial revenues through these auctions, poised to catalyze regional development and provide direct and indirect employment opportunities.
The upcoming 8th round of Commercial Coal Mining auctions will offer a total of 39 mines, comprising 11 under the CM (SP) Act 2015 and 24 under the MMDR Act 1957. The mines are spread across Bihar, Jharkhand, Maharashtra, Odisha, and West Bengal. To make the coal mines more attractive, detailed deliberations have been undertaken to remove bottlenecks, and the Ministry of Coal will provide ‘Drone Pictography’ of each mine as part of the bid information.
In a departure from traditional norms, there are no restrictions on the sale and utilization of coal, and eligibility criteria have been eliminated for participation in the coal mine auctions. The Ministry of Coal has taken proactive measures, including stakeholder consultations and the establishment of a ‘Single Window Clearance System,’ to streamline the auction process and facilitate clearances for successful bidders.
Union Minister of Coal, Mines, and Parliamentary Affairs, Shri Pralhad Joshi, will inaugurate the 8th round of auctions, emphasizing the government’s commitment to promoting private sector participation and boosting coal production. The transparent online auction process will be based on the Percentage Revenue Share model, further ensuring a fair and competitive environment. Detailed information about the mines, auction terms, timelines, and more can be accessed on the MSTC auction platform.
