HAMMER AND TONGS In seventh auction round, 106 coal mines up for grabs

NEW DELHI: The government on Wednesday launched the seventh round of commercial coal auctions in a bid to increase the availability of the dry fuel in the country.

A total of 106 coal mines were put on the block in the latest round of auctions. Of the total mines offered, 61 blocks are partially explored and 45 mines are fully explored.

As many as 95 non-coking coal mines, 10 lignite mines and one coking coal mine are being offered in the latest round of auction.

The government amended the mineral laws to open up the coal sector to provide a level-playing field to the public and private sector players and to permit the auction of coal mines without any restriction on end use. Coal from these mines can be utilised towards own consumption, sale or any other purpose.

The seventh round of commercial coal auction was launched by Defence Minister Rajnath Singh in the national capital in presence of Union Coal and Mines Minister Pralhad Joshi and Minister of State (MoS) Coal and Mines Raosaheb Patil Danve.

In his address, Singh said coal is considered black gold, which plays an important role in strengthening the economy of the country. Coal has contributed in a major way to strengthening the economy of the country. The successful auction of the 106 mines will further strengthen the economy.

“Our energy consumption has grown in the last few years and will continue to grow. And to meet this need, we will have to start taking efforts from today,” he said.

The ongoing auctions of coal blocks are a step towards energy security, Singh said. Coal and Mines Minister Pralhad Joshi said to provide ease of doing business, the government is also “giving incentives for early production. A 50 per cent rebate will be given to the mine owner in the revenue share paid to the state. Further, entry norms have been liberalised”. “There are no eligibility conditions, only upfront payment with a ceiling. Now, there is no restriction on the sale or utilisation of coal. There is now a revenue sharing mechanism instead of a regime of fixed rupee/tonne.”

He also noted that coal will be in use for the next 40-50 years and the government will continue to undertake major capacity expansion projects to further increase its production and offtake.