Private companies may have easy criteria for commercial coal mining auction


Private companies may have easy criteria for commercial coal mining auction

The government plans to keep minimal qualification criteria for companies to participate in the auction of coal blocks for commercial mining, a senior official said. The official said the government has identified 15 large blocks for the pilot round of bidding in December, adding that rules, bid documents and agreements for commercial mining are likely to be finalised soon.

“We want to keep the entry for commercial coal mining easy for companies,” he told ET. “There will be minimal experience or net worth requirements for eligibility. The companies will be asked to submit upfront payment and bank guarantees like in the case of captive coal mines and this should take care of most of the concerns.”

Each of the 15 identified coal blocks will have a capacity to produce 4 million tonnes per annum, the official said. The government also plans to cap the upfront payment for some large blocks which might otherwise run into a huge amount, he said. Read More

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