The launch of the “second attempt” for the auction process for 11 coal mines has been announced by the Centre. During the first attempt, these mines were offered and fetched single bids. Despite, state-owned companies, private players like CG Natural Resources and Adani Group are managing the coal mines across Chhattisgarh and Jharkhand to enhance coal production.
The second attempt of auction process for 11 coal mines has been launched by the Nominated Authority of the Ministry of Coal. Out of the total of eleven mines, four mines fall under the tranche 12 of CM(SP) Act and 7 mines fall under the Tranche 2 of MMDR Act. Additionally, 6 of these 11 mines are completely explored, whereas 5 are partially explored.
Earlier also these mines were offered in the first attempt and received single bids. The auction of coal mines will invite more private players and end the monopoly enjoyed by the state-owned coal India from several years.
On the other hand, coal bearing states like Chhattisgarh and Jharkhand have already been witnessing a surge in coal production. The states have always been listed in the list of top coal-producing states in India. Chhattisgarh independently holds around 16 per cent of the total coal deposits of India.
Contemplating the richness of the coal reserves, private entities like CG Natural Resources, Adani Group Chhattisgarh are managing the coal mining operations and boosting the state’s overall coal production.
In Chhattisgarh, Adani bagged the coal mining agreement for Gare Palma Sector II from Maharashtra State Power Generation Company (MAHAGENCO) for the period of 34 years. The contract includes mine development and final mine closure. During the L1 bidding for Adani group mining Chhattisgarh was selected.
For the Khargaon coal block in the state, CG Natural Resources Pvt Ltd emerged as the highest bidder. It quoted around a six per cent premium on the reserve price for the mine.
With private players entering into the coal mining sector, India is moving towards achieving its goal of ‘Atmanirbhar Bharat’. As per numerous reports, India’s coal requirement by 2023 is estimated to reach 1,123 million tonnes (mt) and presently, the country has the world’s fourth-largest reserves and is the second-largest producer of coal.