Revenue from the Commercial Coal Mining Auction is Collected

 The states of India is to gather 6,656 Crores of annual revenue from the nation’s first commercial coal mining auction. Coal mines are spread over the five states of India.

Highlights:

♦ Prime Minister Modi had launched India’s first auction of coal mines for commercial mining in June 2020.

♦ Out of 38 coal mines put on auction, financial bids were received for 19 coal mines.

♦ The average success rate of the previous coal auctions remained at nearly 30% as only 35 mines could be auctioned out of 116 mines put on auction during the last 10 tranches.

♦ Almost 65% of bidders were from the ‘non-end user’ category like Real Estate, Infrastructure, Pharma, etc., which is a positive sentiment shared by the industry after the removal of the ‘End Use’ criteria from the bidding process.

♦ Nearly, 42 companies participated in the auction, out of which 40 were private players.

♦ Out of these successfully auctioned 19 mines, 11 are opencast, 5 are underground mines and the remaining 3 are a mix of underground and opencast mines. 

♦ These mines are spread over the five states of Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand and Maharashtra and have a consolidated Peak Rated Capacity (PRC) of 51 Million Tonnes Per Annum (MTPA).