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India launches its second commercial coal auction for 67 blocks

The government of India has launched its second auction of commercial coal mines, offering 67 fully and partially explored blocks spread across 6 states – Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh, Maharashtra and Andhra Pradesh. 23 blocks are under Coal Mines (Special Provisions) Act and 44 under Mines and Minerals (Development and Regulation) Act.

In January 2020, the government promulgated the Mineral Laws (Amendment) Ordinance 2020 that aims at attracting investors in the coal mining sector by removing restrictions on end-use and prior experience in coal auctions. India launched the auction process of coal blocks for commercial mining without any end-use restrictions in June 2020 and a total of 38 coal mines were put for auction. In November 2020, 19 mines with a combined production capacity of 51 Mt/year were awarded. Almost 65% of the bidders were from "non-end users", i.e. not active in coal mining or coal-fired power generation.