Home » Govt idenfies 8 lignite blocks for auction via competitive bidding

Govt idenfies 8 lignite blocks for auction via competitive bidding

Govt idenfies 8 lignite blocks for auction via competitive bidding
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Under Competitive Bidding of Coal Mine Rules, 2012, the central government would auction eight lignite blocks, five of them in Gujarat and three in Rajasthan.

However, the government has not announced when these blocks would be put on auction. The estimated reserves in these blocks are not known immediately as they are not completely explored. On June 25, the coal ministry, after discussing with the Governments of Gujarat and Rajasthan, arrived at the end-use projects for each of the blocks, reports indicate.

In Gujarat, the government would auction Panandhro Extension, Vastan, Bharkandam, Ghala and South of Rajpardi blocks. In Rajasthan, government would auction Bithnok, Nagurda-Joranda and Bapaue blocks.

A power company should have entered into a valid power purchase agreement (PPA) on or before January 5, 2011 if it needs to secure any of these blocks.

Three mines – South of Rajpardi in Gujarat and Bithnok Extension and Bapaue – are in Rajasthan and have been earmarked for power sector. This would be offered through tariff-based bidding.

One mine – Panandhro Extension – has been reserved for a Government-owned power company, while three others – Bharkandam, Ghala and Nagurda-Joranda – are earmarked for commercial mining. One block – Vastan – would be given to a Government-owned company for under-coal gasification.

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