Commercial Coal Mine Auction begins

Nov 02: The first day of the auction of coal mines for sale of coal saw strong and healthy competition among the bidders. Ministry of Coal had launched the auction of coal mines for commercial mining on June 18, 2020, pursuant to a two-stage forward auction process (comprising of Initial Offer and Final Offer), wherein the bidders have to bid for the percentage revenue share over the reserve price.

  • The blocks put on auction by Ministry of Coal generated wide interest from bidders who had submitted their bids for various blocks on offer.
  • The technical bids submitted were evaluated and the list of Technically Qualified Bidders was declared.Pursuant to this, Ministry of Coal has commenced the electronic auction of the coal mines for commercial purpose today at 11:00 AM.
  • The Day 1 of e-auction has witnessed strong competition, with auction of some of the mines going on for more than3-4 hours.
  • In all the mines auctioned, the final offer received is above 10% signalling strong demand of coal mines in the market.

The results for Day 1 are as under:

S. No.Name of the MineStatePRC (mtpa)Geological Reserves (MT)Closing Bid Submitted byReserve Price (%)Final Offer (%)Annual Revenue Generated (Rs. Cr.)
1Takli Jena Bellora North and Takli Jena Bellora SouthMaharashtra1.50117.26AUROBINDO REALITY AND INFRASTRUCTURE PRIVATELIMITED/146875430.75267.16
2UrtanMadhya Pradesh0.6555.391JMS MINING PRIVATE LIMITED/147074410.50124.27
3MarkiMangli IIMaharashtra0.3011.44YAZDANI INTERNATIONAL PVT. LTD. / 148341430.7553.43
4Radhikapur WestOdisha6.00312.04VEDANTA LIMITED/68522421.00592.28
5ChaklaJharkhand5.3076.05HINDALCO INDUSTRIES LIMITED/64856414.25519.54