Sat. Sep 23rd, 2023
Commercial coal mines auction gets tremendous response: Hopes pinned on private players like Hindalco, Adani, Vedanta, Latest News Adda

Private players such as Hindalco, JMS Mining Pvt Ltd, Vedanta, Adani Group Chhattisgarh and other coal-bearing states will get a boost with commercial coal mining.

As per the Government of India, the second tranche of commercial coal mines auction is gaining traction. It received a great response as around 50 mine specific tender documents have been purchased by the bidders till date.

In a statement, the coal ministry said, “The response to this auction tranche, till now, has been tremendous.” Official records show that the second tranche of commercial coal mine auction has received a great response which is reflected in around 50 mine specific tender documents being purchased.

Additionally, the purchase of tender documents and registration process is going on the auction portal. The bid submission date is also extended for enabling the interested bidders visit the mine locations for inspection post the lockdown.

According to the Ministry of coal, “This is the second tranche of auction of coal mines for sale of coal which paves way for liberalisation of Indian coal sector enhancing efficiency, competition and private sector participation leading to development of a vibrant coal market, boosting economic growth and employment generation.” NITI Aayog CEO Amitabh Kant also believes that commercial coal mining is a revolutionary and progressive measure taken for the Indian coal sector.

The first tranche of e-auction also witnessed a strong competition amongst bidders and attracted good premium over the floor price. With more involvement by private players, the sector is highly expected to get a major boost.

Adani Group Chhattisgarh has already been working as a mine developer and operator.  In the initial tranche of commercial coal mining auction, the company placed the winning bid for Gondulpara coal mine. On the other hand, Vedanta Limited was awarded with the massive Radhikapur mines and Hindalco Industries emerged as the biggest bidder for the Chakla mine.

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Since the commencement of the auction regime in 2014, it is the highest number of mines offered in a particular tranche. India is the second-largest producer of coal, having the world’s fourth largest reserves. With growing environmental concerns, the country is striving to harness coal reserves in the upcoming decades with the global transition towards green energy.

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