Government of Meghalaya in a bid to sale the coal extracted in the state has invited interested bidders to participate in the spot auction.
It is pertinent to note that coal mining in Meghalaya has been subjected to various obstacles over environmental concerns.
On 17 Apr ’14, National Green Tribunal (NGT) banned illegal coal mining in the state after receiving several petitions regarding acidic discharge from unscientific mines which was polluting the Kopilli river downstream.
Consequently, coal amounting to 3,256,715 t identified at different places in East Jaintia Hills, West Khasi Hills, South West Khasi Hilla and South Garo Hills awaited disposal after no concrete decision was made regarding transportation of coal which was illegally mined.
Later, pursuant to the order dated 3 Jul ’19, Supreme Court directed the state administration to hand over the illegally extracted coal to Coal India Limited for carrying out the auction and deposit the funds with the government.
Scheme for Sale:
The online auction for extracted coal stock would be carried out by MSTC as per the comprehensive plan prepared by Department of Mining and Geology on Aug ’20.
As per the plan, the coal would be transferred to the designated depot and stacked grade-wise, with provision being made for the interested parties to inspect the quality of lots before participation.
Bidding process has been kept similar to the scheme followed in spot auctions of CIL; where buyers are required to quote their bid price equal to or above the reserve price in order secure the coal quantity in auction.
While no latest update has been provided by MSTC regarding auction dates, sources have informed that auction would commence from East Jaintia Hills followed by other districts. The government expects to generate a royalty cess and GST worth INR 21 Crore through the auction.
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