16 coal mines up for auction in third round

The coal ministry will put up 16 mines in the third round of auction starting third week of April, of blocks whose earlier allotments were cancelled by the Supreme Court.

"Third tranche of coal block auction, 11 in regulated and five in unregulated sector, to commence from third week of April," Coal Secretary Anil Swarup tweeted.

Mines in auction for the regulated power sector go through a process of reverse bidding to ensure that a lid is kept on power tariffs.

"No revenue gain for the Centre. The entire amount out of coal block auctions will go to the states. Cooperative federalism at its best," Swarup tweeted earlier about the previous two successful rounds.

"First tranche amount of Rs.466 crore goes to the states by way of upfront payment received from bidders in coal block auctions," he added.

Last week, according to the provisions of the coal ordinance now made into law by parliament, the government allotted 37 mines to central and state-run power units, and one to the Steel Authority of India Ltd. (SAIL).

All the previous allottees of coal mines are required to remove the dry fuel extracted till March 31 by April 8 to ensure their smooth handover to successful bidders at the recent coal auctions.

"It has been decided that the disposal of coal stock extracted till March 31 shall be undertaken. It shall be the obligation of prior allottee to remove such coal stock within a period of seven calendar days by April 8," an official order here said.

At a meeting with successful bidders, Swarup assured them that they would get all possible clearances and permissions so that coal prospecting could start by April 1.