The Ministry of Coal (MoC) has witnessed subdued participation in the current round of commercial mining auctions where JSW Steel has shown interest for a maximum of three coal mines.
The auction process was initiated for sale of 112 mines by revealing the technical bids submitted by the interested parties. These include fresh round of sale under the fifth tranche of auctions along with the second attempt of sale under third and fourth tranches.
Interest was elicited for only 24 mines from 31 different firms against 38 technical bids received via both offline and online mode, indicating a tepid response.
Under the fifth tranche, a total of 28 bids were received against 15 mines, of which, more than two bids were recorded for eight mines. The remaining bids were submitted for mines offered under the second attempt of sale.
Overview of technical bid opening
As per the tender document, only those mines would enter the financial round of the auctions which have received more than two bids.
On the other hand, mines with a single bid under fifth tranche would be considered for a second attempt at sale. However, such mines under the second attempt are eligible for direct allotment to the bidder upon approval from the Empowered Committee of Secretaries.
JSW Steel leads the race
The outcome of technical bids confirmed participation from new companies as well as several end-user industries and mining houses which have previously taken part in the auctions. Among these, industry giant JSW Steel came out with three bids.
Next in line are Cavill Mining, Godavari Power and Ispat, Jhar Mineral Resources, Madhya Bharat Mineral and state-run NLC India – each showing interest in two mines.
In terms of coal mines, Ghogharpalli and its Dip Extension received maximum of seven bids from the participants. These are two adjacent mines based out of Odisha, having a combined geological reserve of 1,288.84 mnt, that have also attained G1 status of exploration.
What’s next?
The technical bids will be examined by a multi-disciplinary technical evaluation committee. Thereafter, technically qualified bidders will be shortlisted for participation in the electronic auction to be conducted on the MSTC portal from 21 July 2022.
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