The latest coal mine auction held by the Ministry of Coal of India has attracted a low interest. Out of the 27 coal mines offered for the iron and steel, cement, and captive power plant end-use (with up to 25% of commercial sale of coal), only 6 coal mines received at least three bids, a minimum threshold for the government to hold auction. Meanwhile, 21 coal mines failed to attract the 3 minimum bids, prompting the government to cancel the auction of these 21 mines.
Among the 6 coal mines with valid interest, the Jamkhani coal mine, located in the state of Odisha, has attracted six bids from Vedanta, JSW, Hindalco, JSPL, Rungta Mines and Natural Resources Energy Limited. The technical bids will be reviewed in October and the auction will start on 24 October 2019.
India introduce coal mine auctions in 2014 after the de-allocation of 214 coal mines to large users. The first round auctioned 24 coal mines, of which half are currently under production, but following auctions failed to arouse a large interest.
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