Indian government may start coal block auction process under commercial mining on June 11

The Center is expected to begin the process of auction of coal blocks under commercial mining on June 11 and about 50 mines are expected to go under the hammer.

For the sale of coal, the government has decided to invite tender for an auction of coal mines on June 11, 2020

The official further said that about 50 coal blocks are likely to be put on sale.

The Ministry of Coal has proposed to launch auction of coal mines in the national capital through a program, after which the central government will work on various amendments in the Acts and Rules to generate sensitivity and generate interest of the private sector in different parts of the country. A series of events have been made and participation as per a government notice.

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The Ministry of Coal called in a bid to appoint a program management partner to organize and manage the event.

The government last week approved a methodology for commercial mining of coal on the basis of revenue sharing.
The decision was taken during a meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi.

Nirmala Sitharaman, finance Minister of India said
to improve the condition of local production of coals and to take down the dependency of imports, it is important to auction coal mines to the private sectors for commercial mining.

The methodology approved by the CCEA provides that the bid parameter will be a share of revenue, with the government stating that bidders will be required to bid for a percentage share of revenue payable to the government.

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The floor price will much less around four percent of the total revenue share. The bid will be accepted in multiples of 0.5 percent of the revenue share, until the percentage of revenue share is 10 percent and then the bid will be accepted in multiples of 0.25 revenue.

Percentage of stake was said by the Ministry of Coal in a release. There will be no restriction on the sale and / or use of coal from the coal mine.

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