New Delhi: The Ministry of Coal has clarified that the process of auctioning commercial coal mines is entirely transparent, fair, and based on a well-defined methodology. The clarification comes in response to the cancellation of 204 coal mines in 2014, after which a robust and transparent mechanism was established for auctioning these mines for various end uses, including power and non-regulated sectors.
In 2020, a forward-looking policy was introduced to promote commercial mining, aiming to boost domestic production and reduce reliance on coal imports. An Empowered Committee of Secretaries (ECoS) was constituted for the successful implementation of commercial coal mining, comprising members from various key departments.
As per the methodology for commercial coal mine auctions, if a mine attracts less than two technically qualified bidders, the first auction attempt for that mine is annulled. The second attempt may be initiated with the approval of the Competent Authority. If only one bidder participates in the second attempt, the matter is referred to the ECoS for a decision regarding the allocation of the mine.
To date, 11 coal mines have been allocated to different bidders based on single bids after the second attempt of auction. The allocation is determined by factors such as transparency, reasonability of the offer, and the number of rounds the mines have been offered.
The table below provides details of some of the successfully auctioned coal mines:
| S. No. | Name of the Coal Mine | State | Successful Bidder | Final Offer | Vesting/Allocation Date | Tranches Before Final Allocation | Tranches Subsequently Put for Auction |
|---|---|---|---|---|---|---|---|
| 1 | Kuraloi (A) North | Odisha | Vedanta Limited | 15.25% | 03-09-2021 | Nil | 1st round of commercial auction |
| 2 | Gondbahera Ujheni East | Madhya Pradesh | MP Natural Resources Private Limited | 5.00% | 10-10-2022 | Nil | 2nd round of commercial auction |
| 3 | Tokisud Block II | Jharkhand | Twenty First Century Mining Private Limited | 5.00% | 08-02-2023 | Nil | 2nd round of commercial auction |
From the auctioned mines, the Adani Group successfully won the Gondbahera Ujheni East coal mine. The commercial coal mine auctions have been deemed a remarkable success, with 91 coal mines auctioned in just three years, marking significant progress in the country’s coal production goals.
Production during FY 23 from commercial mines reached 7.2 million tonnes (MT), and no correlation has been established between Cavill Mining Pvt Ltd and the Adani Group. The Ministry of Coal emphasizes that the coal block auction process adheres to transparency, fairness, and the spirit of the Supreme Court order on coal auctions. The sector has been freed from distortions, vested interests, and sectoral allocations to ensure efficient, fair, and fast allocation of coal blocks, contributing to the nation’s self-reliance in coal production.