Auction process for commercial mining is approaching its conclusion, with 19 coal blocks listed for receiving final bids in the financial round.
The blocks would be sold as per the latest reform being introduced, requiring the participants to quote their offers in terms of percentage of revenue share to be paid for the extracted coal.
Sale via electronic auction would be carried out during 2-9 Nov ’20, with individual blocks being lined-up on separate dates in the period. (Detailed mine-wise schedule for auction can be seen here).
First day of auction would witness sale of five coal blocks, among which the highest bid received for a particular block was four in the technical round, while on the final day, fate of Gare Palma IV/7 block, which had received joint-highest number of bids (8), will be decided.
Four blocks in the technical round which had received single bid namely- Saregraha, Kuraloi, and Chendipada-I and II have been omitted from the list, and are expected to be re-bid in the future tranche of commercial mining auctions.
What will happen in the financial bidding round?
Highest offer received in the technical round based on ranking and elimination, would become the floor price in the electronic auction.
Thereafter, final offers from the qualified bidder would be submitted in the financial round, and the one quoting the highest bid would be adjudged winner of the particular block.
Subsequently, the nominated authority would recommend the selection of successful bidder to the government on 11 Nov ’20, to be followed by approval and issuance of vesting order.
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