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Coal Ministry holds pre-bid conference for auction of 11 coal mines

Coal Ministry holds pre-bid conference for auction of 11 coal mines

The ministry has noted that the auction for the 11 mines will be held online through a transparent two-stage process, on the basis of percentage revenue share.

Of these 11 mines, six are fully explored and five are partially explored Of these 11 mines, six are fully explored and five are partially explored

The Ministry of Coal held a pre-bid conference for the auction of 11 coal mines with prospective bidders on Monday.

Last month, the Ministry of Coal had launched the second attempt of the auction process for 11 coal mines. Of these 11 mines, six are fully explored and five are partially explored. The tender sale had started on September 27, 2021.

"These were the mines that were offered in the first attempt launched on March 25, 2021, and had fetched single bids," noted the Ministry of Coal in an official statement.

The ministry has noted that the auction for the 11 mines will be held online through a transparent two-stage process, on the basis of percentage revenue share.

The key features of this auction process are the introduction of the National Coal Index, no restriction for prior coal mining experience, full flexibility in coal utilisation, optimised payment structures, efficiency promotion through incentives for early production, and the use of clean coal technology.

During the conference, presentations were made on terms and conditions of auction, technical details of mines, and the National Coal Index by SBI Capital Markets Limited, Central Mine Planning and Design Institute (CMPDI), and DDG, respectively.

Prospective bidders are in the process of registration and purchase of the tender documents from the auction portal.

"Similar to the wholehearted response received in the times of Covid-19 pandemic, the Ministry of Coal expects greater participation from more companies in the times to come," read the statement.

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