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Wednesday, December 24, 2014

Coal Ministry to commence first batch of E-Auction of 24 Coal Mines on 25 December 2014

Seven mines reserved for power sector, 16 for other end use plants of iron & steel, cement and CPPs and 1 mine for steel sector 

Pursuant to the order of Honourable Supreme Court and in line with the provisions of Coal Mines (Special Provisions) Ordinance, 2014 and subsequent Rules, Ministry of Coal will commence the first batch of e-auction process for the 25-1=24 (Marki –Mangli II being in inviolate area as informed by MoEF) Schedule II mines from 25 December 2014. 

While briefing the whole process, Anil Swarup, Coal Secretary stated that out of 24 mines proposed to be auctioned, seven are for the power sector, 16 for other end use plants of iron & steel, cement and CPPs and 1 mine for steel sector (coking coal). Two Mines each i.e. four mines shall be auctioned together: Gotitoria East and West and Gare-Palma IV/2 and IV/3, Anil Swarup added. 

Anil Swarup further stated that bidders with specified end use plant are only permitted to participate in this auction. After own consumption, if there is any surplus coal, the successful bidder will be permitted to sell the surplus coal only to CIL at respective bid price or notified price of CIL for that specific grade of coal. Registrations will commence on 25 December 2014 and interested bidders with end use plants could visit MSTC website for the purpose .The registration process will be as per KYC norms and will be available on MSTC website. 

Explaining the process, Anil Swarup said that entire auction process will be transparent, efficient and conducted online only. However, two documents the Bank Guarantee comprising the bid security and an Undertaking stating that all information submitted is true and correct shall be received in hard copy. The auction process will comprise (i) Techno–commercial bid for qualification and (ii) Financial bid (e-auction) for selection of successful bidder. Only 50% of the qualified bidders from technical stage (subject to a minimum of five bidders)will be allowed to participate in the e-auction process. 

Mines set aside for iron & steel, cement and CPPs will be auctioned through ‘Ascending Forward Auction', where qualified bidders will quote incremental bids above the pre-determined floor price. Mines to be allocated for power sector will be auctioned through ‘Descending Reverse Auction' to minimize impact on power tariffs of end use plants. Last date for receiving technical bids will be 31 January 2015 and list of qualified bidders will be placed on MSTC website on 12 February 2015. 

E-auction of coal mines for qualified bidders will be held from 14 February 2015 to 22 February 2015. The entire mine allocation process for Schedule II coal mines will be completed by 23 March 2015 with the signing of Coal Mine Development & Production Agreement and the Vesting Order, Anil Swarup added.
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