Union Minister of Coal, Mines and Parliamentary Affairs, Pralhad Joshi has said states will garner a total revenue of Rs 66.56 billion annually from the success of the nation’s first-ever commercial mining auction. Speaking to the media in New Delhi on Monday after completion of the bidding process, Joshi stated that 19 mines had successfully been auctioned, which was the highest number of successfully auctioned mines in any tranche of coal auctions.
“The results of these auctions are historic and clearly proves that opening up the coal sector under the dynamic and visionary leadership of Prime Minister Shri Narendra Modi Ji was a step in the right direction and is propelling towards making the nation Aatmanirbhar in coal,” Joshi told mediapersons.
Prime Modi had launched India’s first auction of coal mines for commercial mining on June 18.
Joshi said that the auction process had witnessed fierce competition with companies offering great premiums. The highest premium remained at 66.75 per cent while the average premium remained at 29 per cent.
Out of 38 mines put on auction, financial bids were received for 19 mines and the success of the auction remained at 50 per cent. Whereas the average success rate of the previous ten tranches of coal auctions remained at about 30 per cent as only 35 mines could be auctioned, out of 116 mines put on auction during the last ten tranches.
Highlighting the bidding pattern, Joshi said that almost 65 per cent of bidders were from the ‘non-end user’ category like real estate, infrastructure, pharma, etc., which is a positive sentiment shared by the industry after removal of the ‘end-use’ criteria from the bidding process. A total of 42 companies participated in the auction, out of which 40 were private players. Two public sector enterprises, the National Aluminium Co. Ltd (NALCO) and Andhra Pradesh Mineral Development Corporation Ltd (APMDC) also participated in the auction.
Out of these successfully auctioned 19 mines, 11 are open cast, 5 are underground mines and the remaining 3 are a mix of underground and open cast mines. These mines are spread over five states of Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand and Maharashtra, and have consolidated peak rated capacity (PRC) of 51 million tonnes per annum (MTPA).