<p>After successful auction of 28 coal mines in the first two tranches, India’s Ministry of Coal has launched the auction process of 40 new coal mines (21 new mines under CM (SP) Act and 19 new mines under the Tranche 3 of MMDR Act). With coal mines rolling over from previous tranche, there shall be a total of 88 coal mines on offer. Total geological resources of about 55 billion tonnes of coal are on offer from these 88 mines, of which 57 are fully explored mines and 31 are partially explored mines. There are 4 coking coal mines on offer. Mines are spread across 10 coal bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Arunachal Pradesh and Assam.</p><p>From this tranche onwards, Ministry of Coal has introduced provisions in the Agreement related to</p><p>(i) Sustainable mining operations, including mine closure</p><p>(ii) Mechanised evacuation of coal</p><p>(iii) Surrender of coal mine by Successful Bidder upon encountering difficult mining conditions</p><p>The list of mines has been finalized post detailed deliberations and mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40%, heavily built-up area etc. have been excluded.</p><p>Key features of auction process include introduction of National Coal Index, ease in participation with no restriction for prior coal mining experience, full flexibility in coal utilisation, optimized payment structures, efficiency promotion through incentives for early production and use of clean coal technology. Further incentives are being contemplated by the Ministry of Coal with focus on sustainability.</p><p>The commencement of sale of tender document shall start from 12th October 2021. Details of the mines, auction terms, timelines etc. can be accessed on MSTC auction platform. The auction shall be held online through a transparent 2 stage process, on the basis of Percentage Revenue Share. This round of auction will be the 13th Tranche of auction under CMSP Act and 3rd Tranche of auction under MMDR Act.</p><p>SBI Capital Markets Limited, sole Transaction Advisor to Ministry of Coal for the commercial coal mine auction, had devised the methodology and is assisting the Ministry of Coal in conduct of the auction.</p>
<p>After successful auction of 28 coal mines in the first two tranches, India’s Ministry of Coal has launched the auction process of 40 new coal mines (21 new mines under CM (SP) Act and 19 new mines under the Tranche 3 of MMDR Act). With coal mines rolling over from previous tranche, there shall be a total of 88 coal mines on offer. Total geological resources of about 55 billion tonnes of coal are on offer from these 88 mines, of which 57 are fully explored mines and 31 are partially explored mines. There are 4 coking coal mines on offer. Mines are spread across 10 coal bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh, Telangana, Arunachal Pradesh and Assam.</p><p>From this tranche onwards, Ministry of Coal has introduced provisions in the Agreement related to</p><p>(i) Sustainable mining operations, including mine closure</p><p>(ii) Mechanised evacuation of coal</p><p>(iii) Surrender of coal mine by Successful Bidder upon encountering difficult mining conditions</p><p>The list of mines has been finalized post detailed deliberations and mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40%, heavily built-up area etc. have been excluded.</p><p>Key features of auction process include introduction of National Coal Index, ease in participation with no restriction for prior coal mining experience, full flexibility in coal utilisation, optimized payment structures, efficiency promotion through incentives for early production and use of clean coal technology. Further incentives are being contemplated by the Ministry of Coal with focus on sustainability.</p><p>The commencement of sale of tender document shall start from 12th October 2021. Details of the mines, auction terms, timelines etc. can be accessed on MSTC auction platform. The auction shall be held online through a transparent 2 stage process, on the basis of Percentage Revenue Share. This round of auction will be the 13th Tranche of auction under CMSP Act and 3rd Tranche of auction under MMDR Act.</p><p>SBI Capital Markets Limited, sole Transaction Advisor to Ministry of Coal for the commercial coal mine auction, had devised the methodology and is assisting the Ministry of Coal in conduct of the auction.</p>
