India Auctions 91 Coal Mines
11 Mar 2024
2 Min Read
CW Team
The government announced on 5 March 2024 that it has successfully auctioned off 91 coal mines, projecting annual revenue of over Rs 330 billion. Since the inception of commercial coal auctions in 2020, the process has been praised for its transparency and fairness, without any reported complaints from the industry.
According to the Ministry of Coal, between the fiscal years 2015 to 2020, 24 coal mines were auctioned under captive auctions. However, a significant leap was observed with the commercial auctions, which promised substantial revenue and employment opportunities for over 300,000 people once the mines became operational.
The Ministry disclosed that it received 40 offline bids for the coal mines in the ninth round of commercial auction on 19 February, with results pending announcement.
Highlighting the impact of the auction regime, the Ministry emphasised its role in unlocking opportunities within the coal industry while fostering sustainable development across various sectors. The government's policies have encouraged active participation from companies in coal block auctions.
The Ministry also acknowledged its dedication to economic growth and energy security since the Supreme Court of India cancelled 204 coal blocks in 2014. The enactment of the Coal Mines (Special Provisions) Act of 2015 facilitated the auctioning of coal blocks to the private sector and allotment to PSUs through fair and transparent processes.
Reforms in the coal sector have increased private sector participation, promoted healthy competition, and injected fresh investments and technologies. A two-stage auction mechanism was adopted to ensure transparency and prevent cartel formation, with 24 coal mines auctioned to the private sector and 53 allotted to PSUs.
In June 2020, the government launched auctions of coal mines without end-use restrictions, enhancing transparency and flexibility in the auction methodology, tender conditions, and auction process. This move witnessed participation from both private and public sectors for the first time, leading to broader involvement from existing players and newcomers in the mining sector.
The government announced on 5 March 2024 that it has successfully auctioned off 91 coal mines, projecting annual revenue of over Rs 330 billion. Since the inception of commercial coal auctions in 2020, the process has been praised for its transparency and fairness, without any reported complaints from the industry.
According to the Ministry of Coal, between the fiscal years 2015 to 2020, 24 coal mines were auctioned under captive auctions. However, a significant leap was observed with the commercial auctions, which promised substantial revenue and employment opportunities for over 300,000 people once the mines became operational.
The Ministry disclosed that it received 40 offline bids for the coal mines in the ninth round of commercial auction on 19 February, with results pending announcement.
Highlighting the impact of the auction regime, the Ministry emphasised its role in unlocking opportunities within the coal industry while fostering sustainable development across various sectors. The government's policies have encouraged active participation from companies in coal block auctions.
The Ministry also acknowledged its dedication to economic growth and energy security since the Supreme Court of India cancelled 204 coal blocks in 2014. The enactment of the Coal Mines (Special Provisions) Act of 2015 facilitated the auctioning of coal blocks to the private sector and allotment to PSUs through fair and transparent processes.
Reforms in the coal sector have increased private sector participation, promoted healthy competition, and injected fresh investments and technologies. A two-stage auction mechanism was adopted to ensure transparency and prevent cartel formation, with 24 coal mines auctioned to the private sector and 53 allotted to PSUs.
In June 2020, the government launched auctions of coal mines without end-use restrictions, enhancing transparency and flexibility in the auction methodology, tender conditions, and auction process. This move witnessed participation from both private and public sectors for the first time, leading to broader involvement from existing players and newcomers in the mining sector.
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