Coal-Mine
Source: Ministry of Coal

The Indian Ministry of Coal recently commenced the registration process for e-auctioning of 24 coal mines under the Coal Mines (Special Provisions) Ordinance, 2014. These coal mines, listed under Schedule II of the Ordinance, will be open for bidding only to companies with specified end use plant. Out of the 24 coal mines proposed to be e-auctioned, seven mines have been earmarked for power and 17 for iron and steel, cement and captive power plants.

In order to participate in the e-auctioning process, interested bidders need to register as per KYC norms at the e-commerce site of MSTC Limited – www.mstcecommerce.com.

According to the Ministry of Coal, the entire auction process, to be conducted online, will be transparent and efficient. The registrants are required to submit hard copy of the bank guarantee comprising bid security as well as the undertaking for correctness of the information provided.

The auction process will consist of two stages – techno–commercial bid for qualification and financial bid (e-auction) for selection of successful bidder. Only 50 per cent of the qualified bidders from technical stage, subject to a minimum of five bidders, will be allowed to participate in the e-auction process.

The coal mines set aside for iron and steel, cement and captive power plants are going to be auctioned through ‘Ascending Forward Auction’, where qualified bidders have to quote incremental bids above the pre-determined floor price. For the coal mines earmarked for the power sector, ‘Descending Reverse Auction’ will be relied upon to minimize the impact on power tariffs of end use plants.

The last date for receiving technical bids is January 31, 2015. The list of qualified bidders will be placed on the MSTC website on February 12, 2015. The e-auctioning of coal mines for qualified bidders will be held from February14, 2015, to February 22, 2015. The entire mine allocation process for Schedule II coal mines will be completed by March 23, 2015, with the signing of Coal Mine Development and Production Agreement and the Vesting Order.

The second phase of auction for 32 Schedule III coal mines is likely to commence soon.

LIST OF 24 SCHEDULE II COAL MINES EARMARKED FOR E-AUCTION

Name of Mine/Coal Block
Location (State/Coalfield)
Specified End-Use

Gare-Palma IV/2

Gare-Palma IV/3

Chhattisgarh – Mand Raigarh
Power
Tokisud North
Jharkhand – South Kranpura
Power
Amelia (North)
Madhya Pradesh – Singrauli
Power
Talabira I
Odisha – Ib Valley
Power
Sarisatolli
West Bengal – Raniganj
Power
Trans Damodar
West Bengal – Barjora
Power
Parbatpur – Central
Jharkhand – Jharla
Iron & Steel, Cement, Captive Power Plants
Gare-Palma IV/4
Chhattisgarh – Mand Raigarh
Iron & Steel, Cement, Captive Power Plants
Gare-Palma IV/1
Chhattisgarh – Mand Raigarh
Iron & Steel, Cement, Captive Power Plants
Gare-Palma IV/5
Chhattisgarh – Mand Raigarh
Iron & Steel, Cement, Captive Power Plants
Chotia
Chhattisgarh – Hasdo Arand
Iron & Steel, Cement, Captive Power Plants
Gare-Palma IV/7
Chhattisgarh – Mand Raigarh
Iron & Steel, Cement, Captive Power Plants
Kathautia
Jharkhand – Daltonganj
Iron & Steel, Cement, Captive Power Plants
Marki Mangli I
Maharashtra – Wardha Valley
Iron & Steel, Cement, Captive Power Plants
Marki Mangli III
Maharashtra – Wardha Valley
Iron & Steel, Cement, Captive Power Plants
Belgaon
Maharashtra – Wardha Valley
Iron & Steel, Cement, Captive Power Plants
Ardhagram
West Bengal – Raniganj
Iron & Steel, Cement, Captive Power Plants
Namchik Namphuk*
Arunachal Pradesh – Upper Assam
Iron & Steel, Cement, Captive Power Plants

Gotitoria East

Gotitoria West

Madhya Pradesh – Mohpani
Iron & Steel, Cement, Captive Power Plants
Mandla North
Madhya Pradesh – Pench-Kanhan
Iron & Steel, Cement, Captive Power Plants
Bicharpur
Madhya Pradesh – Sohagpur
Iron & Steel, Cement, Captive Power Plants
Sial Ghoghri
Madhya Pradesh – Pench-Kanhan
Iron & Steel, Cement, Captive Power Plants

* Area of the block to be reduced to 39.02 hectares of forest land, for which Phase II Forest Clearance has already been accorded, and non-forest land, if any. In the said 39.02 hectares of forest land, mining shall be permitted during current lease period only and mining in the said block shall be phased out with expiry of mining lease.
Source: Ministry of Coal


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