• <input id="8wm4i"></input>
    <menu id="8wm4i"></menu>
  • <menu id="8wm4i"></menu>
    You are here: Home » Markets ? Commodities ? Energy
    Business Standard

    Second round of coal mine auctioning starts Nov 2, 19 blocks on offer

    Senior officials said the technically qualified bidders will be announced two hours prior to the bidding on Monday

    coal blocks | coal mine auction

    Shreya Jai  |  New Delhi 

    coal, coal mines
    The e-auction is being conducted on the e-commerce portal of state-owned MSTC

    The auctioning of coal mines for commercial mining and sale of coal will commence on November 2, with 19 going under the hammer. This will be the second and final round of the auction process wherein interested bidders will submit their financial bids in real-time on an online platform. This is the first time India is offering coal mines to private companies for commercial sale.

    Adani Enterprises (AEL) through its various companies, Hindalco, Jindal Power, JSW Steel, Vedanta, and Welspun Steel, are in the fray for these mines. There are various non-coal companies, medium-sized enterprises, and state government mining companies participating in the auction.

    Senior officials said the technically qualified bidders will be announced two hours prior to the bidding on Monday. The e-auction is being conducted on the e-commerce portal of state-owned MSTC.

    “Two officers from the Central Mine Planning & Design Institute and the Ministry of Coal will open the initial price offers and upload on the bidding platform of ‘MSTC E-Commerce’. The software will itself declare the highest and lowest offer. The bidding will commence from the highest initial price offer,” said an official, adding there will hardly be any manual intervention after the initial offers are uploaded.


    The bidding time for every mine is two hours, the bid submission window eight minutes. Bidding will close when there is no bid for eight minutes. “As long as the bids keep coming, the process can continue beyond two hours,” said a ministry official.

    The MSTC system will declare the highest bidder or the preferred bidder. The nominated authority of the commercial coal auction will evaluate all bids, submit to the Ministry of Coal, which will declare the successful bidder. The e-auction will run from November 2-9.

    The Centre had started the process of — for commercial mining and sale by private companies — in June. Bidding terms were liberalised to attract foreign players, non-mining entities, and large miners. It amended the Coal Mines (Special Provisions) Act, 2015, in May to simplify the auction process and attract significant investor interest.

    However, there was no offer submitted by any foreign company. AEL has submitted the highest number of technical bids and initial offer for 12 mines.

    The technical round under which the companies submitted their eligibility and initial price offer closed last month. Of the 38 offered by the Ministry of Coal, it received interest from 46 companies for 19 blocks. The total number of bids submitted were 82.

    Dear Reader,

    Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
    We, however, have a request.

    As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

    Support quality journalism and subscribe to Business Standard.

    Digital Editor

    First Published: Fri, October 30 2020. 17:28 IST