KOLKATA, Aug 12: Coal Ministry has deferred the deadline for submissions of bids to participate in the auction of coal blocks for commercial mining by more than a month, to September 29, 2020, according to a report.
“The government did not cite a reason for postponing the deadline from 18 August, but stakeholders have previously requested more time to carry out assessments of the assets on offer,” IHS Markit’s Indian Coal Report said.
It said the new date, meant the technical bids will be opened on September 29, which to be examined between October 1-16, and the auction itself would be conducted between October 19 and November. 9,2020 and the winners will be announced on 11 November.
In the last virtual meeting on July 14, many expected bidders had appealed with the coal ministry to extend the deadline of 18 August for bid submission by 45 days, citing travel constraints for physical visits to mines due to COVID-19 situation.
The coal ministry okayed the new auction process on May 20, easing restrictions on the end-use of the mined coal and moving away from upfront payments towards a revenue sharing model.
A total of 41 mines were initially offered in the first stage, but one mine ? Bander ? has since been withdrawn from the list as it is within an ecologically sensitive zone.
The blocks on offer have the potential to produce 225 mt/y and have reserves of around 17 bnt.
Under the new regulations, would-be miners will bid to pay regional governments a percentage of the revenue from the sale of mined coal, starting at a minimum of 4 per cent, the report elaborated.
(UNI)
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