“This a very positive sentiment and encouraging for the mining sector as it would bring more efficiency and technological advancement in the mining industry,” said a senior officer of the Coal Ministry.
(Representational Image; Source: iStock)
After the removal of the ‘non-end user’ criteria for the auction of Coal Mines, the Government received a strong response from several first-time participants from the sectors like Real Estate, Infrastructure, and Pharma.
“This a very positive sentiment and encouraging for the mining sector as it would bring more efficiency and technological advancement in the mining industry,” said a senior officer of the Coal Ministry.
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He said the government has so far auctioned 30 mines since the launch of the first tranche in June 2020. The total Peak rated capacity auctioned till date is 63.17 MTPA with an average premium of approximately 27.78 per cent against the floor price of 4 per cent indicating strong demand for coal mines in the market. “These mines are expected to generate total annual revenue of about Rs 8158.03 crore and generate an estimated employment of 85,406,” the Ministry said while giving details of the mining.
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In another attempt to auction more coal mines for commercial mining, the government would auction 11 more mines. For the two mines auctioned recently, it received bids for four mines, the Ministry said.
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