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Government to conduct third round of coal block auction for 10 mines

05 Jun 2015 Evaluate

The government has announced the launch of third round of coal block auction for 10 mines with over 350 million tonnes of reserves exclusively to unregulated sectors like steel and cement, between August 11 and 17. Under schedule II category (producing) mines, two will be auctioned, while in the schedule III (ready to produce) eight mines will be put on offer.

The coal secretary Anil Swarup announced that the government will issue the tenders inviting technical and financial bids for the mines from June 8 and the last date for submission of the documents will be July 21. Of the 10 blocks, most have requisite approvals and are located in Maharashtra, Jharkhand, Chhattisgarh and Odisha. Five of these blocks were offered to private companies in the first two rounds of auction, but were later withdrawn as they received less than three bids.

Swarup further added that the ministry has issued instructions to the Nominated Authority to conduct the auctions for mines classified for iron and steel, cement and captive power plant sector and the government will follow the same process as was followed in the auctions held earlier this year with just one change that on this occasion government will treat multiple bids of a single entity as a single bid in terms of determining the 50 percent qualifiers. The government has already auctioned 28 coal mines in last two blocks.

The coal secretary also said the ministry was considering auction of coal linkages for unregulated sectors, including cement and steel, for five years and the ministry is seeking comments from the stakeholders on methodology for proposed auction of coal linkages/LoAs to non-regulated sector through competitive bidding.

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