Govt launches auction process for 24 coal mines

The government today kickstarted the auction process for cancelled coal mines with the launch of a portal for electronic bidding for 24 coal blocks in the first tranche.
The Union Cabinet yesterday approved re-promulgation of the coal ordinance and necessary guidelines for mine allocations, a move that could make the kitty of coal-rich states fatter by Rs 7 lakh crore over the next 30 years.
Entire auction process will be transparent, efficient and conducted online, said Coal and Power Minister Piyush Goyal while launching the portal for e-auction of 24 coal mines - www.Mstcecommerce.Com/auctionhome/coalblock.
"With this, the registration process has been started and interested bidders with end use plants could visit MSTC website for the purpose. The registration process will be as per KYC norms," an official statement said.

Goyal said the auction process will comprise techno- commercial bid for qualification and financial bid (e-auction) for selection of successful bidder.
"Only 50 per cent of the qualified bidders from technical stage (subject to a minimum of 5 bidders) will be allowed to participate in the e-auction process," the statement said.
It said mines set aside for iron & steel, cement and CPPs will be auctioned through 'ascending forward auction', where qualified bidders will quote incremental bids above the pre- determined floor price.
"Mines to be allocated for power sector will be auctioned through 'descending reverse auction' to minimise impact on power tariffs of end use plants. Last date for receiving technical bids will be January 31 and list of qualified bidders will be placed on February 12," it added.