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Coal ministry to hold investors’ conclave for mining sector on 3 December

The coal ministry is organising an investor conclave in Bengaluru on 3 December to enhance participation in commercial auction of coal mines, the Ministry of Coal said.

The high-level meet will be chaired by coal minister Pralhad Joshi and will be attended by Karnataka chief minister Basavaraj Bommai, minister of state for coal, mines and railways, Raosaheb Patil Danve, minister of Mines & Geology Halappa Basappa Achar and minister of Energy for Karnataka Vasudev Sunil Kumar, coal secretary Amrit Lal Meena and mines secretary Vivek Bhardwaj.

The Ministry of Coal plans to conduct a series of investors’ conclave at several locations across India and has already organized such conclaves at Indore and Mumbai which saw very good participation from the prospective bidders indicating the enthusiasm among bidders regarding the ongoing commercial coal mines auction.

The Ministry has launched the process for auction of 133 coal mines under 6th round of commercial auctions and eight coal mines under 2nd attempt of 5th tranche of commercial auctions.

According to the Ministry, these 141 coal mines are from the states of Andhra Pradesh, Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, Telangana and West Bengal and are having cumulative PRC of ~305 MTPA.

“The list of mines has been finalized post detailed deliberations. Mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40%, heavily built-up area etc. have been excluded,“ it said.

The block boundaries of some of the coal mines where there was presence of dense habitation, high green cover or critical infrastructure etc. have been modified basis comments received during stakeholder consultations to enhance bidders’ interest and participation in these coal blocks.

“Key features of the auction process include reduction in upfront amount and bid security amount, permission to relinquish part of the coal mine in case of partially explored coal mines, introduction of National Coal Index and National Lignite Index, ease of participation with no entry barriers, full flexibility in coal utilisation, optimized payment structures, efficiency promotion through incentives for early production and use of clean coal technology,“ Coal ministry said.

The sale of tender document commenced on November 3. Details of the mines, auction terms, timelines etc. can be accessed on MSTC auction platform. The auction shall be held online through a transparent 2 stage process, on the basis of percentage revenue share.

SBI Capital Markets Limited, the sole transaction advisor to Ministry of Coal for the commercial coal mine auctions, is assisting in conduct of the auction.
Source: Livemint

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