On getting poor response from bidders, the government has cancelled the fifth round of coal mines auction. As per the government notification, the tender process for the coal mines being auctioned under 5th tranche of auction of coal mine had been terminated in accordance with Clause 3.3.2(b) of the tender document. The notice further said that consequently, the tenders of six mines stand terminated.
Six coking coal blocks were to go under the hammer in the fifth round, five of which are in Jharkhand and one in Madhya Pradesh, but there was not good response from the bidders because the steel industry is in a bad shape. The six coal mines are Brahmadih, Choritand Tiliaya, Jogeshwar and Khas Jogeshwar, Rabodih OCP and Rohne in Jharkhand, and Urtan North in Madhya Pradesh.
Earlier, in December 2015, the government had annulled the fourth round of coal mine auctions too, planned for January 2016 on account of tepid response from bidders in sectors such as steel besides depressed commodity prices and adverse market conditions and then it announced that it would auction six coking coal mines.
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