Twenty-six coal mines to go under hammer in 9th round of commercial auction

New Delhi: The government will offer 26 coal mines spread across four states to bidders as part of the ninth round of commercial auction, to be launched on Wednesday.

The coal ministry, in a statement on Monday, said that this auction will notably have no sale or utilization restrictions on coal, and eligibility criteria for bidders have been abolished, fostering a more inclusive and competitive environment.

This latest round of auctions marks a departure from previous practices by removing technical and financial qualifications for bidders, aiming to encourage wider participation. The ministry emphasized that the auction terms are designed to ensure transparency and fair market-driven pricing.

The amendment of mineral laws has played a crucial role in revitalizing the coal sector. It has levelled the playing field for public and private entities, permitting auctions for diverse purposes, including both consumption and sale.

“The upcoming ninth round of commercial coal auctions is poised to enhance the participation of more private players in the coal sector, fostering competition, efficiency, innovation and contributing to sustainable development,” the ministry said in the statement.

Of the 26 mines on offer, seven are fully explored, and 19 are partially explored. The distribution of these mines is as follows: Madhya Pradesh with 12 mines, Chattisgarh with 8, Jharkhand with 5, and Telangana with 1.

The ministry also highlighted its key reforms, such as the creation of a Single Window Clearance System (SWCS) portal, which simplifies obtaining various clearances for coal mines. This, along with the introduction of a market-driven pricing mechanism, is expected to create a favourable environment for growth and innovation in the energy sector.