After the failure of last two tranches of coal-block auctions, the coal ministry has received “overwhelming” response for the latest invitations for 19 captive mined. A senior coal ministry official told FE that “as many as 69 companies have purchased the tender documents priced at `5 lakh”. The last two auction-tranches for the coal blocks, where 15 mines were offered, had to be cancelled as they could not even elicit three bidders to participate.
The official attributed the positive reaction from the industry to the changes incorporated in the auction terms, such as, allowing private companies to sell up to 25% of production from the captive mines in the open market. “There are 11 mines which more than three parties want to bid for,” the person said. Read More