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Govt annuls coal block auction due to poor response

31 Dec 2015 Evaluate

Poor response from bidders in sectors like steel amid depressed commodity prices and adverse market conditions has forced the government to annul the process for fourth round of coal block auctions, meant for deregulated industries such as steel and cement which was scheduled for the next month.

Coal secretary Anil Swarup has said that “We have not got sufficient number of bids to carry on with the coal block auctions. We have received 15 bids for nine blocks. So in view of this, we had to annul the process and the government will wait for the right time for the auction of these mines”. He further said that the coal mines to be auctioned were earmarked for non-regulated sectors like iron and steel, cement and captive power plants, which have been impacted due to adverse market conditions.

The government had last month kick-started the process to auction nine blocks for sectors like iron and steel, cement and captive power plants. The fourth round of mines auction was slated for January 18-22. The previous three rounds of auction would generate proceeds of over Rs 3 lakh crore, to be realised over 30 years, for states where the mines are located. The coal blocks, which were to be put under the hammer were Brahmapuri and Suliyari in Madhya Pradesh, Bundu and Gondulpura in Jharkhand, Gondkhari and Khappa & Extn in Maharashtra and Jaganathpur A and Jaganathpur B in West Bengal besides Bhaskarpara mine in Chhattisgarh.


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