Auction process for 40 new coal mines to begin next week: Govt

The government on Friday said it will begin next week the next round of auction process for 40 new blocks for the sale of coal.

As the coal ministry has entered into a rolling auction mechanism, the blocks rolled over from the previous tranche will also be on offer, according to an official statement.

"The Ministry of Coal is to launch next round of auction process for forty new coal mines for sale of coal," the statement said.

Union Coal and Mines Minister Pralhad Joshi will be the chief guest of the launch event, the statement said.

The government, it said, is on a continuous journey to reform the coal sector and unlock value for the nation's economy.

The success of these auctions will help in further strengthening the vision of an Aatmanirbhar Bharat, as it will help reduce the country's coal imports and ensure energy security.

Earlier, the coal ministry had said that it has executed agreements with eight successful bidders pursuant to the auction of the second tranche of coal mines for commercial mining.

Eight coal mines have been successfully auctioned with the winning percentage of revenue share ranging from 6 to 75.5 per cent, with an average revenue share of 30 per cent, the ministry had said.

The electronic auction of these mines was conducted in the first week of August this year.

In the first attempt of auction under the 11th tranche of auction under the Coal Mines (Special Provisions) Act, 2015. And, under the first tranche of auction under the MMDR Act 1957, out of the 38 coal mines, 19 were successfully auctioned.