New players take lead in commercial coal auction

Prakash Industries quoted a premium of 55.7% for Bhaskarpara mine in Chhattisgarh, the highest bid of the day

Into the third day of the commercial coal auction which is into its second phase, saw newer players take lead in bidding for coal blocks. For the three mines offered on Wednesday, Prakash Industries Ltd, CG Natural Resources Private Ltd and Shreesatya Mines Private Ltd were successful bidders. 

Prakash Industries quoted a premium of 55.7 per cent for Bhaskarpara mine in Chhattisgarh, the highest bid of the day. Shreesatya Mines quoted 54.5 per cent premium for Burakhap mine in Jharkhand. CG quoted 4 per cent premium for Khargaon mine of Chhattisgarh. 

On Tuesday, a record high bid of 79 per cent premium was quoted by Sunflag Iron & Steel Company for the Bhivkund mine in Maharashtra.

Coal ministry has put 19 mines for auction in the second round of the auction. Out of the total mines, 10 are fully explored, 9 are partially explored mines. There are four coking coal mines and the balance 15 mines are non-coking coal mines. 

The Centre in 2020 opened the coal mining sector with private companies entering the arena of commercial mining and sale of coal. It amended the Coal Mines (Special Provisions) Act, 2015, in May to open the coal auction for non-mining, MSMEs and foreign companies. The two-part auction concluded in November when companies submitted bids for 19 out of the total 38 coal blocks on offer.