Taking another step towards allocating more coal blocks for commercial utilization, the ministry has finalized a tentative list of blocks that would be considered for auction in the next tranche.
Initially, a total of 64 blocks have been proposed from Andhra Pradesh, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and West Bengal.
Some familiar names appeared in the list viz. North Dhadu, Chitarpur, Bhaskarpara, and Shankarpur Bhatgaon which were also offered in the previous rounds of auction. However, the ministry has considered certain factors while selecting the blocks in order to avoid conflict and engage higher participation from the stakeholders.
Notably, the blocks excluded from the list include those:
*Falling under un-notified Lemru elephant reserve of Chhattisgarh, wildlife habitat of Great Indian Bustard, Kinnersani ESZ, Tiger reserve/corridor, heavily built up area.
*Having over 40% of green cover.
*With ongoing exploration activities or having overlap with active CBM blocks have been excluded.
*Presently under litigation.
Stakeholders’ preference has been requested to confirm the final list of coal blocks, for which due date for submitting response is 24 Feb ’21. Concurrently, the ministry is likely to deliberate tender document highlighting the reforms and policies to be followed in the auction.
Background:
India launched first ever auction for commercial coal mining last year by announcing no restriction on sale and utilisation of coal produced from the block. Besides, some key reforms were also introduced to attract stakeholder’s interest which included revenue sharing mechanism and change in bid parameter from INR/t basis to percentage share.
Initially, the auction began with a total of 41 blocks but due to state government’s resistance the list was later revised to 38 blocks out of which interest came in for 23 blocks in the technical round. Ultimately, excluding 4 blocks which received a single bid; 19 blocks entered the final round of auction and was subjected to moderate response as they fetched an average bid of 27.32%.
Second-attempt for sale of remaining 4 blocks has been initiated by carrying out further modification in the tender document. However, the effort made was in vain as only a single bid has been received for just one block. The decision regarding its allotment is to be made later this month.
Leave a Reply