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Government kick starts auction of 10 coal blocks in the third tranche

09 Jun 2015 Evaluate

Government has kick started the process of auctioning 10 coal blocks in the third tranche, inviting bids from companies engaged in sectors like steel, cement and captive power generation. The government has directed the nominated authority to undertake the auction of schedule II & III coal mines to eligible companies. Of the total estimated geological reserves of 858.19 million tones, the mines are having extractable coal of about 356.245 million tonnes and are located in Maharashtra, MP, Jharkhand, Chhattisgarh and Odisha.

Two mines will be auctioned under schedule II category (producing) mines, while in the schedule III (ready to produce) eight mines will be put on offer. The two mines in schedule II category are MarkiMangli-I mine in Maharashtra and Parbatpur-Central mine in Jharkhand. Both are explored blocks having extractable reserves of 62.12 million tonnes.

The eight mines in the schedule III category are Dongri Tal-II mine (Madhya Pradesh), KosarDongergaon (Maharashtra), Margi Mangli-IV (Maharashtra), Majra (Maharashtra), Chitarpur (Jharkhand), Bhaskarpara (Chhattisgarh), Sondiha (Chhattisgarh) and Jamkhani (Odisha). 

The government has so far auctioned 29 coal blocks in two tranches to private companies and garnered over Rs 2 lakh crore. The Supreme Court in September last year had cancelled allocation of 204 coal mines allocated to companies without auction.

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