With the new additions, 75 mines with reserves of approximately 38,000 million tonnes (mt) of fuel will be introduced temporarily for commercial mining without any end-use restrictions. Out of 3.4 lakh metric tonnes of the total coal reserves in the country, state-run Coal India is a block with combined reserves of 60,000 metric tonnes.
It would also be the second set of coal assets to be auctioned through the new market-determined revenue share model, which replaced the fixed duty/tonnage regime that previously closed private investors.
New Delhi (Natural Energy News): The Union Coal Ministry has added 11 new blocks to the list of mines to be offered for the second tranche of commercial coal auctions. With the new additions, 75 mines with approximately 38,000 million tonnes (MT) of fuel will be introduced temporarily for commercial mining without any end-use restrictions. Out of 3.4 lakh metric tonnes of the total coal reserves in the country, state-run Coal India is a block with combined reserves of 60,000 metric tonnes.
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Following a modest response from investors in the first round of auctions under the new commercial coal mining policy in November last year, the government has excluded wildlife reserves and mines falling into blocks in areas that have more than 40% green cover. Fear about environmental norms. It will also be the second set of coal assets to be auctioned through the new market-determined revenue share model, which replaced the fixed duty/tonnage regime that previously closed private investors.
The mines offered in the upcoming auction are located in Chhattisgarh, Odisha, Jharkhand, Maharashtra and Madhya Pradesh. The mine is also not included in the latest list under litigation or overlapping with currently active coal-bed methane blocks. The government had identified 41 blocks for the first round of commercial coal auctions, but after objections from Maharashtra, Chhattisgarh and Jharkhand, only 38 mines were auctioned.
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Even though financial bids were received for 19 mines in the first round, the success rate was better than the previous ten auctions under the earlier regime, where bids were received for only 35 of the 116 mines proposed. The first auction under commercial coal mining policy saw aggressive bidding by domestic and domestic companies, with the highest premium being 66.8%, while the average premium share was 29%.
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