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According to an official statement on Tuesday, 91 coal mines have been auctioned, with an estimated yearly revenue of nearly ₹33,000 crore. Since the start of commercial coal auctions in 2020, the industry has praised the transparent and fair auction procedure, with no complaints received, it noted.
The Ministry of Coal stated that 24 coal mines were auctioned off through captive auctions between FY 2015 and FY 2020. "A total of 91 coal mines have been auctioned under commercial auctions, with expected annual revenue of more than ₹33,000 crore and employment opportunities for over 3 lakh people once operationalized," the Ministry said.
The Ministry said on February 19 that it had received 40 offline offers for the coal mines up for sale in the ninth round of the commercial auction. The results of the latest round have yet to be announced. The auction regime has not only unlocked vast opportunities within the coal industry but has also spurred sustainable development across various sectors, and government policies have empowered the companies to participate actively in coal block auctions, the statement said.
The Ministry further said it had been dedicated to fostering economic growth and energy security since the Supreme Court of India cancelled 204 coal blocks in 2014. The Coal Mines (Special Provisions) Act 2015 was enacted for auctioning coal blocks to the private sector and allotting the coal blocks to PSUs for specified end-use plants through a fair and transparent process,
The reforms in the coal sector have yielded promising results, with a notable increase in the number of private sector entities participating in coal block auctions. This promotes healthy competition and injects fresh investments and innovative technologies into the coal sector, driving growth and development across the value chain.
"To ensure transparency and prevent cartel formation, a two-stage auction mechanism was adopted. Under the end-use specific regime, 24 coal mines were auctioned to the private sector and 53 coal mines were allotted to PSUs with specified end-use plants," the ministry said.
In June 2020, the government launched auctions of coal mines without end-use restrictions, enhancing transparency and flexibility in the auction methodology, tender conditions, and auction process.
For the first time in history, commercial coal auctions in India witnessed participation from both the private and public sectors. There were no technical or financial eligibility criteria, leading to broader participation from existing players as well as players who had no prior experience in the mining sector.
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