Lok Sabha Question No. 4418 (UNSTARRED), answered on 2022-03-30
Subject: Auction of Coal Mines for Commercial Mining
Ministry: COAL
Asked by: Girish Bhalchandra Bapat, Rahul Ramesh Shewale, Chandra Sekhar Sahu, Pritam Gopinath Munde

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. 4418

TO BE ANSWERED ON 30.03.2022

## Auction of Coal Mines for Commercial Mining

4418.   SHRI GIRISH BHALACHANDRA BAPAT:

SHRI RAHUL RAMESH SHEWALE:

SHRI CHANDRA SEKHAR SAHU:

DR. PRITAM GOPINATHRAO MUNDE:

Will the Minister of COAL be pleased to state:

- (a) whether the Government has launched 2 nd attempt of auction of coal mines for commercial mining in 2021;
- (b) if so, the details thereof and the details of bids received for such auctions;
- (c)  the  details  of  revenue  likely  to  be  generated  from  such  auctions  along  with  the  number  of employment opportunities in coal mining sector;
- (d) whether it has also witnessed that several first- time participants from non-end user categories have participated in the auction process; and
- (e) if so, the details thereof and the steps taken by the Government for the success of non-end user category in coal mining sector?

## ANSWER

## MINISTER OF COAL, MINES & PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

- a.  and  b.  Yes  Sir.  Second  attempt  of  second  round  of  auction  for  Commercial  Mining  was launched on 27 th September 2021. Details of bids received in this second round is as below:
- c. Details of estimated revenue and employment likely to be generated from aforementioned coal blocks is as below:

| S. No.   | Name of Coal Mine      |   MSTC Regn No | Name of Bidder                                |
|----------|------------------------|----------------|-----------------------------------------------|
| 1        | Beheraband North Extn. |         151187 | Auro Coal Private Limited                     |
|          |                        |          64836 | JSW Steel Ltd.                                |
| 2        | Gondbahera Ujheni East |         235414 | MP Natural Resources Private Limited          |
| 3        | Lalgarh (North)        |         242504 | Adhunik Power &Natural Resources Ltd.         |
|          |                        |         265144 | Assam Mineral Development Corporation Limited |
|          |                        |         268462 | Virtuous Mining Limited                       |
| 4        | Tokisud Block II       |         242211 | Twenty First Century Mining Private Limited   |

|   S.No | Mine                   | State          | Successful Bidder                           | Annual Revenue generated based on the PRC of mine(Rs. crore)   | Total Employment   |
|--------|------------------------|----------------|---------------------------------------------|----------------------------------------------------------------|--------------------|
|      1 | Lalgarh (North)        | Jharkhand      | Adhunik Power and Natural Resources Ltd     | 213.22                                                         | 1352               |
|      2 | Beheraband North Extn  | Madhya Pradesh | AURO COAL PRIVATE LIMITED                   | NA*                                                            | NA*                |
|      3 | Gondbahera Ujheni East | Madhya Pradesh | MP Natural Resources Private Limited        | NA*                                                            | NA*                |
|      4 | Tokisud Block II       | Jharkhand      | Twenty First Century Mining Private Limited | 156.20                                                         | 2028               |

d. and e.      Out of seven bidders who participated in Second attempt in Second round of auction, two bidders, namely JSW Steel and Adhunik Power & Natural Resources Ltd.  have participated in first round of commercial auction also. Remaining five bidders were the first time bidders.

Indian coal sector has come a long way from the nationalization of coal mines in 1973 to opening up of the sector for commercial coal mining by private players.  While the auction-based regime introduced in 2014 allowed private sector participation, it was limited to captive usage in own  end  use  plants.  Opening  up  the  sector  for  commercial  mining  by  private  sector  would generate  a  host  of  benefits  for  all  the  stakeholders  in  coal  mining.  Key  features  of  the commercial coal mining policy are:

- o FDI Policy has been amended to allow 100% FDI under automatic route for coal mining activities for commercial mining. Any foreign firm can also participate in the commercial auction in adherence to the applicable FDI norms.
- o No technical or financial eligibility criteria to participate in the commercial auction process and the Ministry of Coal, Government of India has thrown the sector open to newer players.
- o Requirement of minimum number of Technically Qualified Bidders for valid auction process is just 2, rather than earlier 3.
- o Payments for upfront amount has been relaxed and shall be paid in 4 equal instalments with an upper ceiling of Rs. 500 crore for mines with reserves above 200 MT and Rs. 100 crore for mines with reserves up to 200 MT.
- o No restriction on utilisation of coal. Mine owner can use the coal in any manner including sale, captive use, export and conversion.
- o National Coal Index implemented to create a transparent, market-based pricing mechanism
- o Greater Flexibility in Coal Production Schedule
- o Incentive for early coal production and utilization of coal in coal gasification and coal liquefaction

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