Govt offers 67 coal mines for 2nd tranche of commercial auction, brings in rolling process of auction

The coal ministry today announced the second round of commercial coal auction which will offer 67 coal mines. The geological reserves for the 67 coal mines are 35,997 million tonnes (MT) of which 6 coking coal mines with geological reserves of 1,018 MT will be offered. The ministry has also decided to bring in the rolling auction process. This will keep rolling the mines which do not find a bidder at the same time the ministry will keep adding explored or partially explored coal mines.

“We are steadily making coal attractive for downstream companies. The Government is honest in its intention that coal should be available on tap. We have made sure that ample fully discovered blocks are part of the coal auction. The Coal blocks will now always be available, in case it does not get auctioned. We have also ensured to offer quality coal, where not too much forest is interfered with because India cannot grow at the cost of environment” said AK Jain, Secretary, Ministry of coal

The government is of the view that with rapid energy transition and growth of renewable energy sources this is time to utilise India’s large coal reserves.

“The rolling auction concept is a good concept ideated by the officials at the Ministry of Coal. We have decided that we will allot coal mines even if only one bid is received. India’s energy consumption is going to double by 2040 and we are confident that 50 percent of the energy need will be met by coal” said Pralhad Joshi, Minister for Coal, Mines and Parliamentary Affairs.

The government offered 38 coal mines for its first ever commercial coal auction held in November 2020.