TFP Bureau Ranchi; January 17, 2024: The Ministry of Coal orchestrated a significant roadshow in Ranchi, aimed at intensifying participation in commercial auctions. The event featured Secretary of the Ministry of Coal, Shri Amrit Lal Meena, as the chief guest. Guests of Honour included Additional Secretary & Nominated Authority, Shri M Nagaraju, Shri Aboobacker Siddique P, Secretary (Mines), Government of Jharkhand, and Special Guest Shri P M Prasad, Chairman, Coal India Limited.
The Coal Ministry has successfully concluded auctions for 91 coal mines in the initial seven tranches. Currently, the ministry has initiated the auction process for 35 coal mines under the 8th round of commercial auctions and 4 coal mines under the 2nd attempt of the 7th round. The Bid Due Date is set for January 29, 2024. Simultaneously, the 9th round offering 27 coal mines and 5 coal mines under the second attempt of the 7th round was launched on December 20, 2023, with a bid due date of February 19, 2024.
Mr. M. Nagaraju, Additional Secretary & Nominated Authority, welcomed investors, highlighting the coal reforms implemented by the Ministry of Coal to enhance the appeal of the coal auction process, making it more investor-friendly.
Participating virtually, Secretary of the Ministry of Coal, Shri Amrit Lal Meena, reiterated the ministry’s commitment to supporting the coal industry, assuring assistance to prospective bidders. He emphasized the profitability of coal mining and encouraged investors to participate in the auctions.
Mr. P M Prasad, Chairman, Coal India Limited, commended the Ministry’s efforts in making Commercial Coal Mine Auctions a success by auctioning 91 coal mines within a short span. He welcomed the Ministry’s steps, including the Single Window Clearance system and the establishment of a Project Monitoring Unit.
Mr. Aboobacker Siddique P, Secretary, Mines, Government of Jharkhand, extended a warm welcome to investors. Mr. Chiranjib Patra, GM, CMPDIL, presented technical details of the coal blocks offered in the commercial auction process. Mr. Shubham Goel, Vice President, SBI Capital Markets, delivered a presentation on the terms and conditions of the auction process.
Key features of the auction process include a reduction in upfront and bid security amounts, submission of bid security through NEFT/RTGS, permission to relinquish part of the coal mine for partially explored ones, introduction of National Coal Index and National Lignite Index, ease of participation, full flexibility in coal utilization, optimized payment structures, incentives for early production, use of clean coal technology, and a rebate for Performance Security for underground mines.
The tender document sale commenced on November 15, 2023, for the 8th round and from December 20, 2023, for the 9th round. Detailed information about the mines, auction terms, timelines, etc., can be accessed on the MSTC auction platform. The auction will be conducted online through a transparent two-stage process, based on Percentage Revenue Share, with SBI Capital Markets Limited acting as the sole Transaction Advisor to the Ministry of Coal for the commercial coal mine auctions.
