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Bidding system for coal mines in India

Coal News - Published on Tue, 13 Mar 2018

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Under the provisions of the Coal Mines Act, 2015, auction of coal mines is conducted in an electronic platform through a transparent mechanism. Bidding Process for the regulated sector and non- regulated sectors has been kept different. Forward e-auction has been adopted for non-regulated sector and reverse–cum-forward e-auction has been adopted for regulated sector. The methodology adopted for the bidding is fixed bid system where the bidder quotes in INR./tonne for coal extracted from the coal mine.

Under the provisions of the said Act, 89 coal mines have so far been successfully allocated. Of these 89 coal mines, 31 have been allocated through e-auction and 58 have been allotted to Government Companies.

The Hon'ble High Court of Delhi in W.P. (C) No. 1384/ 2015 titled M/s Sharda Energy and Minerals Ltd. Vs. Union of India, among other things, have observed that the methodology adopted by the respondents (Ministry of Coal and Nominated Authority) for conducting the auctions in the manner by first asking for an initial price offer and then conducting an electronic auction of the technically qualified bidders is working well.

A High Power Expert Committee has been constituted under the Chairmanship of Shri Pratyush Sinha, former Chief Vigilance Commissioner.

The terms of reference of the Committee are as follows:

1. Examine the criteria in the present bid system;
2. Study the challenges and efficacy of the same;
3. Examine the difficulties in the fixed bid system;
4. Obtain and examine the suggestions of stakeholders on bid criteria;
5. Suggestion for change of bid-criteria for improvement in the bidding system, if any.
6. Any other relevant suggestion with respect to bidding system.

So far, four meetings of the Committee have been conducted.

This information was given by the Minister of Railways and Coal Shri Piyush Goyal in a written reply to a question in Rajya Sabha today.

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Posted By : Nanda Koijam on Tue, 13 Mar 2018
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