Ministry of Coal launches fourth tranche of coal mine auctioningUnion Minister of Coal, Mines and Parliamentary Affairs, Pralhad Joshi, has launched the fourth tranche of auction of 99 coal mines including 24 new mines in a function on 16 December 2021.
After successful auction of 28 coal mines in the first two tranches and upon receipt of 53 bids for 20 coal mines under Tranche 13 of CM(SP) Act and Tranche 3 of MMDR Act, the Ministry of Coal has now launched the auction process of 24 new coal mines (nine new mines under Tranche 14 of CM(SP) Act and 15 new mines under the Tranche 4 of MMDR Act).
With coal mines rolling over from third round of commercial auctions and second attempt of second tranche of commercial auctions, there will be a total of 99 coal mines on offer.
Of these 99 mines on offer, 59 are fully explored mines and 40 are partially explored. These mines are spread across eight coal bearing states of Jharkhand, Chhattisgarh, Odisha, Madhya Pradesh, Maharashtra, West Bengal, Andhra Pradesh and Telangana.
The list of mines has been finalised post detailed deliberations and mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40 percent, heavily built-up area, etc have been excluded.
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, optimised 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.
The commencement of sale of tender document will begin from 16 December 2021. Details of the mines, auction terms, timelines, etc can be accessed on MSTC auction platform. The auction will be held online through a transparent two stage process, on the basis of percentage revenue share.
This round of auction will be Tranche 14 of auction under CMSP Act and Tranche 4 of auction under MMDR Act.
SBI Capital Markets, sole transaction advisor to the 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.
A total of 99 coal mines of which 35 coal mines are under Tranche 14 of auction under CMSP Act and 64 coal mines are under fourth tranche of auction under MMDR Act.

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