The Ministry of Coal (MoC) has cancelled the coal mine development and production agreement (CMPDA) issued for Burakhap coal block due to prolonged delays in execution of statutory payments.
The Burakhap block, having geological reserve close to 10 mnt, was acquired by Shreesatya Mines Pvt Ltd (SMPL) at final price of 54.5% in the second tranche of commercial mining auctions.
As per tender document, the awardee was required to pay installment for upfront amount along with performance security upon the execution of CMPDA.
However, attempts made by SMPL to comply with the allotment norms were found inadequate as it failed to execute these payments within the stipulated time-period. Ultimately, this led to the termination of the allotment order, in addition, the part payment submitted by the company was also fortified.
Fresh round of auctions to come
The sale of coal blocks for commercial mining via auctions based on revenue sharing model has received subdued response, as a lot of these blocks have failed to attract prospective bidders.
Apart from Burakhap, a total of 46 blocks have been sold in the four tranches held so far, where more than 150 different blocks have featured.
However, the ministry is carrying out these auctions in full swing with an aim to augment domestic coal availability.
In a latest attempt, the ministry has placed on offer 122 coal blocks for sale. These comprise the new round of auction under the fifth tranche, along with second attempt of sale for blocks which had received a single bid in the third and fourth tranches.
As per latest schedule, the auction under all these rounds will take place concurrently. The due date for bid submission is 27 June 2022 after which these bids would be examined for evaluating the technically qualified bidders. Finally, the electronic auction will commence on 21 July 2022.
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