The financial round of bidding for sale of coal blocks envisaged for commercial mining under the sixth tranche of auctions will commence from 27 February, 2023.
In the latest round, 27 coal blocks are in contention for sale, including 25 from the sixth tranche along with two for the second attempt of sale under the fifth tranche. These blocks will be contested among technically qualified bidders on the basis of forward auction scheme.
Here, the bidders will place bids for the respective blocks in terms of percentage share of revenue payable to the government. The bidder quoting highest bid will be allocated the block.
It is important to note that the coal ministry had offered a total of 133 coal blocks in the third tranche of the auctions. Out of which, interest was elicited for 32 coal blocks in the technical round. Among these, 7 had received single bids and 25 had received more than one bid.
However, only the blocks with multiple bids have made the final list, in accordance with the methodology defined for the auctions. On similar lines, the two blocks (Datima and Dongri-Tal) receiving multiple bids in second attempt of sale under the fifth tranche were also included.
NTPC in fray for Burapahar block
The auctions will be carried out in an 8-day long process, where highest of 10 blocks are offered on the first day.
Auction Timeline for Sixth Tranche
Interestingly, India’s largest power producer, NTPC Limited, is participating for the first time in these auctions. The company has showed interest for Burapahar coal block located in Odisha.
Meanwhile, Gujarat Mineral Development Corporation (GMDC) has sent maximum of 7 entries, followed by Assam Mineral Development Corporation at 3.
In terms of individual blocks, Gare Palma IV/2 and 3 have fetched maximum of 15 bids, followed by Namchik Namphuk at 6, while 5 bids each were received for Datima and Banai-Bahlumuda blocks.
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