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regular-article-logo Tuesday, 05 November 2024

Coal mine auction runs into hurdles

The nominated authority has sought ‘supplemental information’ and ‘additional clarification’ on the technical bids submitted by the bidders, causing a delay

Our Special Correspondent New Delhi Published 21.10.20, 01:31 AM
The government received bids for 23 of the 38 coal blocks for commercial mining. A total of 42 domestic companies submitted bids.

The government received bids for 23 of the 38 coal blocks for commercial mining. A total of 42 domestic companies submitted bids. Shutterstock

The allocation of coal blocks for commercial mining will be delayed as the nominated authority to conduct the auction has sought additional information and clarification on the technical bids submitted by bidders.

The nominated authority has sought “supplemental information” and “additional clarification” on the technical bids submitted by the bidders, causing a delay, according to the auction website.

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The government received bids for 23 of the 38 coal blocks for commercial mining. A total of 42 domestic companies submitted bids.

The technical bids were submitted on September 29 and are being examined by the authority. It was supposed to evaluate the financial bids from October 19 and a technical evaluation committee will make final offers to the qualified bidders by November 9.

Global giants had stayed away from the bidding and there were no bids for 15 of 38 coal mines on offer. Gautam Adani-controlled conglomerate Adani Enterprises placed the highest number of seven bids, while group company Adani Power Resources placed a bid for one mine.

Vedanta, JSPL, Hindalco Industries, JSW Steel and Nalco were among others that have submitted bids for 23 coal blocks. The government has put up for auction 38 coal blocks for commercial mining.

The highest number of bids (seven) were submitted by Adani Enterprises; followed by Hindalco Industries and JMS Mining (five each); and The Andhra Pradesh Mineral Development Corporation, Aurobindo Reality and Infrastructure and EMIL Mines and Minerals Resources submitted four bids each.

Of the total 76 bids, the highest bids were made for Gotitoria (East) and Gotitoria (West) and Gare Palma IV/7 coal blocks (eight bids for each), followed by six bids each for Brahmadiha and Urma Paharitola mines.

In May, the cabinet had allowed coal blocks for commercial mining ending the monopoly of state-run Coal India in the commercial production of the dry fuel.

Coal mines will be put for auction on the basis of revenue share instead of the regime of fixed rupee/tonne, the Coal Ministry had said. There shall be no restriction on the sale and/or utilisation of coal from the coal mine, the ministry added.

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