Accelerating the allotment process, Coal Ministry has put forward 15 additional coal mines up for sale under the Coal Mines (Special Provisions), act.
The mines this term are envisaged to be allocated to the government companies under the preferential dispensation rules by means of four different tranches- 6th, 7th, 8th and 9th.
It is pertaining to note that rules prescribed under Coal Mines (Special Provision) Act, allow Coal Ministry to carry out allotment of coal blocks either by means of competitive e-auction or by preferential allotment entitled for the central/state PSUs.
The sixth tranche of allotment includes 5 mines identified for allotment to government companies for own consumption of power generation. In the 7th tranche, 8 mines are offered to the central/state PSUs for sale of coal.
Eight tranche include a single mine to be utilized for production of steel, while for the Ninth tranche Tokisud North mine was offered for sale of coal, whose vesting order with respect to its previous allottee was recently terminated earlier this year.
Detailed list of coal mines along with their location is attached herein.
Earlier, the Coal Ministry had invited bids for auction of 27 coal mines, earmarked for the non-regulating sector (Iron & Steel, Cement and Captive Power Plants, excluding steel makers using coking coal).
Coal Production from Captive Mines
Output from captive coal blocks had fell 45% Y-o-Y to 28.82 MnT in FY15, after the Honorable Supreme court had cancelled the allotment of 204 coal mines. Since then, output from the re-allocated mines have been steadily rising y-o-y.
During the FY19, total production from captive mines stood at 49.88 MnT, thereby attaining its annual target of 40 MnT.
The ministry has stated that at peak rated capacity, the 42 mines offered for sale would yield an annual production of 70 MnT.
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