Coal Minister kicks off process for online auction of mines

Tribune News Service

New Delhi, December 25

Minister of State for Power, Coal & New and Renewable Energy Piyush Goyal today launched a portal for starting the process of e-auction of coal blocks, thus formally starting the process for the reallocation of the mines.

A total of 24 coal blocks are being put up for the auction in the first stage with the process for the rest from the first block of 41 coal mines to go under the hammer to start later.

The government had yesterday re-promulgated the coal ordinance, after the Bill could not be passed in the Rajya Sabha due to pandemonium by the Opposition parties, in a bid to finish the process of coal block allocations as ordered by the apex court. Launching the portal, (www.mstcecommerce.com/auctionhome/coalblock), Goyal said the entire auction process will be transparent, efficient and conducted online only.

With this, the registration process has been started and interested bidders with end use plants could visit MSTC website for the purpose. The registration process will be as per KYC norms and will be available on MSTC website.

Goyal said two documents — the bank guarantee and an undertaking stating that all information submitted is true and correct — however, shall be received in hard copy.

The auction process will comprise (i) techno–commercial bid for qualification and (ii) financial bid (e-auction) for selection of successful bidder. Only 50% of the qualified bidders from technical stage (subject to a minimum of five bidders) will be allowed to participate in the e-auction process.

Mines set aside for iron & steel, cement and CPPs will be auctioned through ‘Ascending Forward Auction’, where qualified bidders will quote incremental bids above the pre-determined floor price.

Mines to be allocated for power sector will be auctioned through ‘Descending Reverse Auction’ to minimise impact on power tariffs of end use plants. Last date for receiving technical bids will be January 31, 2015 and list of qualified bidders will be placed on MSTC website on February 12, 2015.

E-auction of coal mines for qualified bidders will be held from February14, 2015 to February 22, 2015.The entire mine allocation process for Schedule II coal mines will be completed by March 23, 2015 with the signing of Coal Mine Development & Production Agreement and the Vesting Order.

The second phase of auction for 32 Schedule III coal mines will commence soon.