Auction of Coal Mines

Sixty seven  coal mines have been offered in the current tranche of auction for sale of coal.Out of these 67 coal mines, 14 coal mines are located in Odisha. List of these 14 coal mines is given below:

No auction revenue will accrue to the Union Government. Revenue to the State Governments concerned from 67 coal mines offered in the current tranche of auction for sale of coal can not be estimated during the auction process as out of these 67 coal mines, 30 coal mines are partially explored and the number of mines, which will get auctioned can not be known.

 Coal mines are auctioned under the provisions of Coal Mines (Special Provisions) Act, 2015 and Mines and Minerals (Development and Regulation) Act, 1957.Methodology for auction of coal and lignite mines/blocks for sale of coal/lignite on revenue sharing basis was issued on 28.05.2020. Salient features of the Methodology are as under:

• Based on Revenue sharing mechanism. Floor percentage at 4%.
• Applicable to fully explored as well as partially explored coal blocks.
• Upfront amount is based on value of estimated geological reserves.
• Successful Bidder to pay monthly revenue share based on percentage of revenue share quoted, total quantity of coal and notional or actual price whichever is higher.
• Incentives for early production, gasification and liquefaction of coal.
• Exploitation of Coal Bed Methane is allowed.
• No restriction on the sale and/ or utilisation of coal. More flexibility in coal production schedule.

This information was given by the Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Lok Sabha today.

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SS/RKP

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