Ministry result

The Ministry of Coal is auctioning off two other coal mines; to date 30 mines auctioned

New Delhi: The Ministry of Coal had launched the 2nd attempt to auction 11 coal mines for commercial purposes on September 27, 2021, and bids were received for 4 mines. The auction was held for two mines which received multiple bids. The results of the auction are as follows:

Name of mines

1. Lalgarh (North), (Jharkhand)
Preferred Bidder (Adhunik Power and Natural Resources Ltd.)
Initial bid: 11.00%
Final offer: 48.50
Annual income generated: Rs. 213.22 Cr. 2. Beheraband North Post * (Madhya Pradesh)
Preferred Bidder (Auro Coal Private Ltd.)
Initial offer: 8.50%
Final bid: 9.50
Annual income generated: NA

* This is a partially explored coal mine and therefore PRC is not available for this mine. Therefore, the annual income that will be generated by these coal mines cannot be calculated at present.

With the conduct of this auction, the Ministry of Coal has successfully auctioned 30 mines to date (comprising 23 fully explored and 7 partially explored mines) since the launch of the first tranche in June 2020. The Peak’s total nominal capacity auctioned to date is 63.17 MTPA with an average premium of around 27.78% over the floor price of 4%, indicating strong demand for coal mines in the market . These mines are expected to generate total annual revenues of ~ 8,158.03 crore and estimated employment of 85,406. The commercial coal mine auction has seen strong competition and several new entrants from the ‘non-end user’ category such as the ‘real estate, infrastructure, pharmacy, etc. by the industry after the removal of “end-use” criteria from the tendering process and is expected to bring more efficiency and technological advancement in the mining industry.