Lok Sabha Question No. 862 (UNSTARRED), answered on 2015-12-03
Subject: Auction of Coal Blocks
Ministry: COAL
Asked by: DINESH TRIVEDI

## Government of India Ministry of Coal Lok Sabha Unstarred Question No.862

## To be answered on 03.12.2015 Auction of Coal Blocks

862. SHRI DINESH TRIVEDI:

Will the Minister of COAL be pleased to state:

- (a) whether any coal blocks were auctioned for less than the notified price of coal;
- (b) if  so,  the details thereof including the notified price and auctioned price of every such block; and
- (c) the reasons for the divergence in the two prices, if any?

## ANSWER MINISTER  OF  STATE  (I/C)  FOR  COAL,  POWER,  NEW  &  RENEWABLE ENERGY (SHRI PIYUSH GOYAL)

(a)  &  (b):  Reverse  bidding  methodology  was  adopted  in  the  auction  of  coal mines earmarked for power sector under the provisions of Coal Mines (Special Provisions) Act, 2015 and the rules framed thereunder in order to ensure that there  is  no  rise  in  power  tariffs.  Under  the  reverse  bidding  methodology, bidders  have  to  submit  bids  below  the  Coal  India  Limited's  notified  price  for corresponding grade of coal which is the ceiling price. The lowest bid submitted is  taken  as  the  fuel  cost  in  determination  of  power  tariff.  In  case,  bid  price reaches  Rs.  Zero  in  reverse  bidding,  the  bidding  changes  to  a  forward  one where  bidders  have  to quote  additional  premium  payable  to  the  State Government where the mine is located, over and above the fixed reserve price of  Rs.  100/-  per  tonne.  The  reverse  bidding  methodology  for  auction  of  coal mines for power sector has been designed keeping in view the interest of power consumers. The Ceiling Price and the Closing bid in Rs./Tonne in respect of the coal blocks auctioned to the Power Sector is as under:-

| S.No.                                                         | Name of the Coal Mine                                         | Celing Price (Rs./mt.)                                        | Closing Price (Rs./mt.)                                       |
|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
| Initial Reverse and then Forward bidding (F) for Power Sector | Initial Reverse and then Forward bidding (F) for Power Sector | Initial Reverse and then Forward bidding (F) for Power Sector | Initial Reverse and then Forward bidding (F) for Power Sector |
| 1                                                             | Tokisud North                                                 | 970                                                           | 1110 (F)                                                      |
| 2                                                             | Amelia North                                                  | 1250                                                          | 712 (F)                                                       |
| 3                                                             | Talabira - I                                                  | 610                                                           | 478 (F)                                                       |
| 4                                                             | Sarisatolli                                                   | 700                                                           | 470 (F)                                                       |
| 5                                                             | Trans Damodar                                                 | 1600                                                          | 940 (F)                                                       |
| 6                                                             | Mandakini                                                     | 860                                                           | 650 (F)                                                       |
| 7                                                             | Utkal - C                                                     | 660                                                           | 770 (F)                                                       |
| 8                                                             | Jitpur                                                        | 660                                                           | 302 (F)                                                       |
| 9                                                             | Ganeshpur                                                     | 700                                                           | 704 (F)                                                       |

(c): Does not arise in view of reply to part (a) & (b) above.

*****