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Industry Seeks Extension to Commercial Coal Auctions

Coal News - Published on Wed, 15 Jul 2020

Image Source: Coal Block Auction
FE reported that amid low demand of coal in the current economic environment, potential investors have requested Indian government to delay the commercial coal auctions by three months. In letters sent to the Union coal ministry regarding the upcoming auction, industry players have pointed that more time is needed for identifying reliable coal customer to purchase coal and assess the grade of coal for the companies to take informed decision.

The government on June 18 had launched the maiden auction for coal blocks without any end-use restrictions, and the bidding is scheduled to take place on August 18. This would also be the first set of coal assets to be auctioned off through the new market-determined revenue share model that replaced the fixed fee/tonne regime that turned off private investors. Also, as approved by the Cabinet in January, unexplored coal blocks have been put up for auctions for the first time, which is seen to add certainty of tenure from the prospecting to the production stages.

Most of the mines earmarked for commercial auctions are located in Madhya Pradesh 11, followed by Chhattisgarh 9, Jharkhand 9, Odisha 9 and Maharashtra 3.

Source :

Posted By : Yogender Pancholi on Wed, 15 Jul 2020
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