Commercial coal auction process ‘initiated’, 13 blocks from Vid figure in first tranche
| Date :20-Jan-2020 |
Staff Reporter :
Ministry of Coal releases ‘Discussion Paper’ on auction of coal mines for sale of coal The list of coal mines includes 12 under CM (SP) Act and one under MMDR Act from Vidarbha
The Ministry of Coal is ‘initiating’ the process for auction of coal mines for sale of coal. it is expected to be held in multiple tranches and the first tranche is proposed to be launched in the current financial year. The list of 74 coal blocks the Government plans to auction under commercial mining, includes 13 from Vidarbha region. The Ministry of Coal’s step comes close on the heels of recent amendments to Coal Mines (Special Provisions) Act and Mines and Minerals (Development and Regulation) Act.
Under the Coal Mines (Special Provisions) Act total 62 coal blocks have been identified in the country, including 12 from Vidarbha. The blocks from Vidarbha region include Bander, Warora (West) northern part, Warora (West) southern part, Warora, Takli-Jena-Bellora north and south, Marki-Zari-Jamni-Adkoli, Majra, Khappa and Extension, Gondkhairi, Dahegaon/Makardhokda IV, Chinora, Bhandak West. Whereas, under the Mines and Minerals (Development and Regulation) Act, total 12 blocks have been listed for auction plans, including Dahegaon-Dhapewada and Tonda Khairi-Khandala combined coal block from Vidarbha.
As far as the blocks in Vidarbha are concerned, mining plan has not been prepared for only one. The Dahegaon-Dhapewada and Tonda Khairi-Khandala combined coal block is the only block from the region included in the list under Mines and Minerals (Development and Regulation) Act. The geological block area is 40.45 sq km, and the block is in Kalmeshwar tehsil of Nagpur district. The total reserves are estimated to be 421.578 metric tonnes (MT).
These reserves include 308.147 MT in Dahegaon-Dhapewada and 60.431 MT in Tonda Khairi-Khandala, and 53 MT in annexed area. The rest 12 blocks in the region were previously allotted to some or the other entity. In fact, the Central Mine Planning and Design Institute Limited (CMPDI) has made available all the necessary data relating to the coal blocks identified for auctions in the ‘Discussion Paper’, through an independent website on Coal Block Information System. However, it has made it clear that for the blocks listed under Coal Mines (Special Provisions) Act, ‘substantial part’ of the information provided is from the submissions of prior allottee of the coal blocks. Ministry of Coal also floated a ‘Discussion Paper’ containing the draft methodology and key bidding terms and conditions on the auction of coal mines for sale of coal. It uploaded the same on https://www.coal.nic.in/ and https://www.coal.nic.in/content/nominated-authority.
A ‘tentative list’ of mines along with mine-specific details also is provided at https://coalblock-is.cmpdi.co.in/pages/dashboard.php. The ministry urged the interested stakeholders to view the ‘Discussion Paper’ and mine-specific details and submit their views/ suggestions, and indicate their preferences for the mines to be considered for auction under the first tranche. The Ordinance promulgated last week amended Coal Mines (Special Provisions) Act, 2015 and Mines and Minerals (Development and Regulation) Act, 1957, whereby the restriction on prior experience in coal mining was removed, ‘thus enabling wider participation in auction of coal mines’.
Further, the Ordinance also enables auction of ‘unexplored and partially explored’ coal blocks for mining through prospecting license-cum-mining lease. “These steps are expected to result in opening up of the coal sector completely for commercial mining to local as well as global firms. This would further boost economic growth and employment generation,” read an official statement issued in this regard. Pralhad Joshi, Union Minister for Coal and Mines, also was quoted as saying that it was ‘a historic step’ towards Ease of Doing Business and ‘democratisation’ of coal and mining sectors.
Coal blocks in Vidarbha under CM (SP) Act and prior allottees
n Bander -- AMR Iron and Steel Pvt Ltd, Century Textiles and Industries Ltd, J K Cement Ltd
n Bhandak West -- Shree Baidyanath Ayurved Bhawan Ltd
n Chinora -- Fieldmining and Ispat Ltd
n Dahegaon/Makardhokda-IV -- IST Steel & Power Ltd, Gujarat Ambuja Cement Ltd, Lafarge India Pvt Ltd
n Gondkhairi -- M/s Maharashtra Seamless Limited, Enduse Steel Plant and captive power plant (Koppal, Karnataka); M/s Dhariwal Infrastructure (P) Ltd, Deori Steel Plant and captive power (Gondia,
Maharashtra); and M/s Kesoram Industries Ltd, cement plant and captive power plant (Gulberga, Karnataka)
nKhappa and Extension -- M/s Sunflag Iron and Steel Ltd and M/s Dalmia Cement Bharat Ltd
n Majra -- M/s Gondwana Ispat Ltd
n Marki-Zari-Jamni-Adkoli -- Maharashtra State Mining Corporation Ltd
n Takli-Jena-Bellora (North) and (South) -- Central Collieries Co Ltd and Lloyds Metals and Engineering Ltd
n Warora -- Maharashtra State Mining Corporation Ltd
n Warora (West) southern part -- Fieldmining and Ispat Ltd
n Warora (West) northern part -- Bhatia International Ltd