The Indian Ministry of Coal recently commenced the registration process for e-auctioning of 24 coal mines under the Coal Mines (Special Provisions) Ordinance, 2014. These coal mines, listed under Schedule II of the Ordinance, will be open for bidding only to companies with specified end use plant. Out of the 24 coal mines proposed to be e-auctioned, seven mines have been earmarked for power and 17 for iron and steel, cement and captive power plants.
In order to participate in the e-auctioning process, interested bidders need to register as per KYC norms at the e-commerce site of MSTC Limited – www.mstcecommerce.com.
According to the Ministry of Coal, the entire auction process, to be conducted online, will be transparent and efficient. The registrants are required to submit hard copy of the bank guarantee comprising bid security as well as the undertaking for correctness of the information provided.
The auction process will consist of two stages – 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 five bidders, will be allowed to participate in the e-auction process.
The coal mines set aside for iron and steel, cement and captive power plants are going to be auctioned through ‘Ascending Forward Auction’, where qualified bidders have to quote incremental bids above the pre-determined floor price. For the coal mines earmarked for the power sector, ‘Descending Reverse Auction’ will be relied upon to minimize the impact on power tariffs of end use plants.
The last date for receiving technical bids is January 31, 2015. The list of qualified bidders will be placed on the MSTC website on February 12, 2015. The e-auctioning of coal mines for qualified bidders will be held from February14, 2015, to February 22, 2015. The entire mine allocation process for Schedule II coal mines will be completed by March 23, 2015, with the signing of Coal Mine Development and Production Agreement and the Vesting Order.
The second phase of auction for 32 Schedule III coal mines is likely to commence soon.
LIST OF 24 SCHEDULE II COAL MINES EARMARKED FOR E-AUCTION
|
Name of Mine/Coal Block
|
Location (State/Coalfield)
|
Specified End-Use
|
|
Gare-Palma IV/2 Gare-Palma IV/3 |
Chhattisgarh – Mand Raigarh
|
Power
|
|
Tokisud North
|
Jharkhand – South Kranpura
|
Power
|
|
Amelia (North)
|
Madhya Pradesh – Singrauli
|
Power
|
|
Talabira I
|
Odisha – Ib Valley
|
Power
|
|
Sarisatolli
|
West Bengal – Raniganj
|
Power
|
|
Trans Damodar
|
West Bengal – Barjora
|
Power
|
|
Parbatpur – Central
|
Jharkhand – Jharla
|
Iron & Steel, Cement, Captive Power Plants
|
|
Gare-Palma IV/4
|
Chhattisgarh – Mand Raigarh
|
Iron & Steel, Cement, Captive Power Plants
|
|
Gare-Palma IV/1
|
Chhattisgarh – Mand Raigarh
|
Iron & Steel, Cement, Captive Power Plants
|
|
Gare-Palma IV/5
|
Chhattisgarh – Mand Raigarh
|
Iron & Steel, Cement, Captive Power Plants
|
|
Chotia
|
Chhattisgarh – Hasdo Arand
|
Iron & Steel, Cement, Captive Power Plants
|
|
Gare-Palma IV/7
|
Chhattisgarh – Mand Raigarh
|
Iron & Steel, Cement, Captive Power Plants
|
|
Kathautia
|
Jharkhand – Daltonganj
|
Iron & Steel, Cement, Captive Power Plants
|
|
Marki Mangli I
|
Maharashtra – Wardha Valley
|
Iron & Steel, Cement, Captive Power Plants
|
|
Marki Mangli III
|
Maharashtra – Wardha Valley
|
Iron & Steel, Cement, Captive Power Plants
|
|
Belgaon
|
Maharashtra – Wardha Valley
|
Iron & Steel, Cement, Captive Power Plants
|
|
Ardhagram
|
West Bengal – Raniganj
|
Iron & Steel, Cement, Captive Power Plants
|
|
Namchik Namphuk*
|
Arunachal Pradesh – Upper Assam
|
Iron & Steel, Cement, Captive Power Plants
|
|
Gotitoria East Gotitoria West |
Madhya Pradesh – Mohpani
|
Iron & Steel, Cement, Captive Power Plants
|
|
Mandla North
|
Madhya Pradesh – Pench-Kanhan
|
Iron & Steel, Cement, Captive Power Plants
|
|
Bicharpur
|
Madhya Pradesh – Sohagpur
|
Iron & Steel, Cement, Captive Power Plants
|
|
Sial Ghoghri
|
Madhya Pradesh – Pench-Kanhan
|
Iron & Steel, Cement, Captive Power Plants
|
* Area of the block to be reduced to 39.02 hectares of forest land, for which Phase II Forest Clearance has already been accorded, and non-forest land, if any. In the said 39.02 hectares of forest land, mining shall be permitted during current lease period only and mining in the said block shall be phased out with expiry of mining lease.
Source: Ministry of Coal
