Coal India to Launch Commercial Mine Auctions From June 18; A Step to Self-Reliance
June 13, 2020 - Coal India Limited, a state-owned coal mining company, will launch auctions for commercial mines from June 18, which is a step towards energy self-reliance, India's Ministry of Coal said in a statement released on June 11.
"We are launching the first-ever commercial coal auctions in India on June 18, with the event graced by the Indian Prime Minister Narendra Modi. I am proud that we are well on our way to achieve self-reliance in coal," according to the Union Minister of Coal and Mines Shri Pralhad Josh.
The auctions will embed lesser restrictions including, but not limited to allowing new companies to participate in the bidding process and encourage flexibility in mine operations. Successful bidders will also have the provision for incentives for early production and coal gasification.
The auction process will provide strong energy security fundamentals by providing plenty of coal with large scale employment and investment opportunities, the statement said.
Coal India is targeting 1 billion mt of production volume in financial year 2023-2024, where the introduction of new mine auctions will supplement this initiative, the statement added.
Coal India produced 82 million mt of coal over April-May, down 11% year on year, the company said in a regulatory filing on June 1.
It produced 602 million mt of coal in the fiscal year to March 31, down 0.8% from a year ago, however, missing its 660 million mt output target.
Its target for the current fiscal year is to produce 710 million mt of coal.