New round of coal auction with old and rejected mines, same problems


New round of coal auction with old and rejected mines, same problems

As the Centre revives the earlier rejected coal mines by auctioning them again, the move could actually be to ease pressure off the national miner Coal India Limited (CIL).

For the upcoming two rounds of the auction of coal mines, the Centre has notified 18 mines of which 14 are the ones which were put up for auction and didn’t Illinois it any interest. The mines would be offered only to steel, iron and captive power units. There are no mines offered to power generators.

However, the captive power producer is allowed to sell up to 25% coal if it is surplus, in the open market. The last two tranches of the auction in 2016-17 were cancelled after no buyer came up.

The mines were put for non-power sector. Steel sector said the mines are not large enough and also sector was undergoing stress to bid for new mines. Some mines were undergoing litigation.  Read More

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