India Puts 67 Coal Mines in Auction
In the largest ever coal mine auction, India is bidding out 67 mines with a total resource base of 36 billion tonnes of coal and explored mines PRCs of about 150 million tonnes in the second tranche of commercial coal mine auctions. Of the 67 blocks being auctioned, while 37 are fully explored, the balance 30 have been partially explored. These mines are spread across Chhattisgarh. The commencement of sale of tender document started from 25th March 2021 and the bid due date is 24th June 2021
The two-stage auction process allows bidders to quote the percentage revenue share over the reserve price. Besides there will be no restriction on the sale and utilization of coal from the mines. Earlier, blocks were allocated to companies on payment of fixed amounts per tonne.
Also, the government is introducing a rolling auction mechanism wherein any un-auctioned mine shall remain available for auction on the portal, with more mines being added as and when available
India has the world’s fourth largest reserves and is the second-largest producer of coal. With global shift to green energy to address growing environmental concerns, the Indian government is trying to harness coal reserves within the next three decades.