Unprecedented response to commercial coal mine auction in 6th round, says govt

The government launched the sixth round of commercial coal mines auction in November and had put on block 141 mines. Till now the government has successfully conducted five rounds of auctions and sold 64 blocks with a peak rate capacity of 152 million tonnes.

New Delhi: The Coal Ministry on Monday said it has received an unprecedented response to the blocks put on sale under the sixth round of commercial auction with 36 mines getting a total of 99 bids. The government launched the sixth round of commercial coal mines auction in November and had put on block 141 mines.

"For the 6th round, two or more bids were received for 25 coal mines, a single bid for seven mines, and 10 bids for four mines in the second attempt of the fifth round. This is the biggest response received for commercial coal mine auctions," the ministry said in a statement. The commercial coal mines auction was launched by Prime Minister Narendra Modi on June 18, 2020.

The government has taken a number of reforms in this auction round like permission to relinquish part of mine, reduction in the upfront amount and bid security, and introduction of the National Lignite Index among others. Till now the government has successfully conducted five rounds of auctions and sold 64 blocks with a peak rate capacity of 152 million tonnes.

Once these blocks are operational, they will generate more than Rs 20,000 crore for the states as annual revenue, leading to direct and indirect employment for more than two lakh people. (PTI)