Bhubaneswar: In a huge reform aimed at attracting foreign investment in mining sector, the Centre Thursday launched the auction of 41 coal blocks, including nine from the state, for commercial extraction by private sector.
Chendipada-I, Chendipada-II, Machhakata, Mahanadi, Radhikapur (East), Radhikapur (West), Brahmanbil & Kardabahal, Kuraloi (A) North and Phuljhari (East & West) from Odisha are included in the auction process.
PM Narendra Modi launched the auction process as a part of the series of announcements made by the Government of India under the Aatma Nirbhar Bharat Abhiyan.
In all, 41 mines with a total geological coal reserve of 17 billion tonne are on offer under the first phase of commercial coal mine auctions. These include both large and small mines with peak rated capacities (PRC) ranging from 0.5 to 40 million tonne per annum (mtpa) of coal. The cumulative PRC of all mines is 225 mtpa.
These auctions are quite different from the earlier ones of restricted sectors, both in usage and price. All such restrictions will go out of the window in the upcoming process.
The proposed auctions have terms and conditions which are very liberal allowing new companies to participate in the bidding process, reduced upfront amount, adjustment of upfront amount against royalty, liberal efficiency parameters to encourage flexibility to operationalise the coal mines, transparent bidding process, 100 per cent FDI through automatic route allowed and reasonable financial terms and revenue sharing model based on National Coal Index.
The successful bidders also will have flexibility in coal production unlike past and have provision for incentives for early production and coal gasification. The winners could have 65 per cent of scheduled production on annual basis and 75 per cent of scheduled production over a block of 3 years.
