Lack of interest from bidders have forced the Union government to once again cancel the sixth and seventh rounds of coal mine auctions, under which it was planning to put on sale 19 blocks.
The coal ministry in a notice to the bidders said that “the 6th Tranche and 7th Tranche of auction stands cancelled.”While the government did not specify the reasons for the cancellation, sources, however, pointed at the lack of interest from bidders.“Accordingly, the tender process of the coal mines...stands cancelled,” the ministry said.Under the sixth round, the government had earlier announced the auction of 13 blocks for the regulated sectors, including iron and steel, cement and aluminium.
The 13 blocks announced under sixth round of auction were Brahampuri, Bundu, Gondkari, Gondulpara, Jaganathpur A, JaganathpurB, Khappa and Extn, Bhaskarpara, Marki Mangli IV, Sondiha, Chitarpur, Jamkhani and Gare Palma IV/1.
While in the seventh tranche, the ministry said it would auction six coking coal blocks for iron and steel sector. The blocks were Brahmadiha, Choritand Tilaiya, Jogeshwar and Khas Jogeshwar, Rabodh, Rohne and Urtan North.The tender process under the sixth and seventh rounds was initiated vide notice inviting tender dated October 25, 2018.
A source had earlier said the successful allottees of the 19 coal blocks will be allowed to sell up to 25 per cent of the actual production in open market at prices fixed by state-owned Coal India.However, this is not surprising.
Private players have also stayed away from the auction of captive mines, where production levels have been low. The last two tranches of auction for coal blocks, where 15 mines were offered, had to be cancelled as they could not even elicit three bidders to participate.
What was On sale
6th tranche: 13 blocks including Brahampuri, Bundu, Gondkari, Gondulpara, Jaganathpur A, JaganathpurB, Khappa and Extn, Bhaskarpara, Marki Mangli IV, Sondiha, Chitarpur, Jamkhani and Gare Palma IV/1
7th tranche: Six coking coal blocks including Brahmadiha, Choritand Tilaiya, Jogeshwar and Khas Jogeshwar, Rabodh, Rohne and Urtan North