The auction for 41 coal mines for commercial mining has been formally launched as part of the Aatma Nirbhar Bharat Abhiyan.
The Ministry of Coal has notified the tender detailing the coal blocks to be awarded under the auction. Of the total 41 mines on offer, 11 are in Madhya Pradesh, nine each in Chhattisgarh, Jharkhand, and Odisha, and three in Maharashtra. The mines are expected to reach peak production of 225 mt, which can produce around 15 per cent of India’s coal output by 2025-26. The auction is expected to attract investments worth Rs 330 billion, with private miners sharing revenues with the government. The bidders will be required to bid for a percentage share of revenue payable to the state government from the production and sale of mined coal. The price of coal extracted will be determined through the National Coal Index which comprises market-linked benchmarks. The last date for the purchase of tender documents is August 14, 2020 and the bids can be submitted till August 18, 2020.