Eight more coal blocks to be auctioned

The Indian government has announced that it will auction eight coal blocks with 1143 million t of reserves to steel and cement firms.

Giving timelines, Swarup said the Notice Inviting Tender (NIT) will be issued and the commencement of sale of tender document shall start from November 20.

The Centre has already mobilised over Rs 3 lakh crore in the first three rounds of coal auction, which will be realised over 30 years by states where the mines are located.

The Brahampuri and the partially explored Suliyari coal block in Madhya Pradesh has coal reserves of 102.49 MT and 142 MT, respectively, while the Gondkhari and Khappa coal mines in Maharashtra has reserves of 98.72 MT and 84.72 MT of the fossil fuel.

India’s government started selling coal mines earlier this year through auctions after its supreme court scrapped the controversial practice of selective allocation to private companies.

“It has been chose to auction eight Schedule III (ready to produce) coal mines earmarked for non-regulated sectors such as iron and steel, cement and captive power plants in the fourth tranche”.

Coal India, which accounts for over 80 per cent of the domestic coal production, is targeting one billion tonnes of coal production by financial year 2020. Directions have been issued to the nominated authority for conduct of the auctions.

Total peak production at those mines is estimated at 12.9 million tonnes. All issues including clearances, stamp duty, handing over of assets etc were “fortunately resolved on the intervention of Prime Minister who himself reviewed the projects”, Swarup told reporters. Mining leases have been granted in 29 cases and remaining four will also get it soon, he added.

He also said that higher coal production and improved wagon availability from the railways have resulted in improved stock position in power plants, with average coal stock rising to 19 days.