The auction of five Captive Coal Blocks has adjourned by Central Government which was decided to auction in February primarily for the Iron & Steel sector.
Central Mine Planning & Design Institute (CMPDI), a wholly-owned subsidiary of Coal India Limited (CIL) was assigned to float a tender on behalf of Coal Ministry. CMPDI supposed to float tender for five captive Coal blocks on Wednesday.
All the five captive Coal blocks belongs to Jharkhand & West Bengal, including three Coking and two thermal Coal reserves. Out of the three Coking Coal blocks, two will be developed as underground mines and one is opencast mine with existing capacity of 60 MnT located at East Bokaro of Jharkhand.
From the two thermal Coal assets, one is to be developed as underground mine which have existence capacity to produce 17 MnT of Coal located at Ranigunj (West Bengal) and other is opencast with the capacity of 1.5 MnT per year based in North Karanpura of Jharkhand.
According to the auction methodology, the successful bidder has to pay 10% of the Net Present Value (NPV) of the asset as an open payment.
However, the Coal Ministry had decided to ask for opinions of Coal-bearing states on the auction programs.
The states are requested by the Coal Ministry to respond latest by 10 Feb, 2014. While the fresh schedule for auction is yet to be firmed up.
Meanwhile, 27 State-owned electricity distribution companies applied for allocation of four captive Coal assets, to be offered through the Government dispensation route. The assets will be used in investment in Power generation through tariff-based biding.
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