First day of auction of coal mines for sale of coal saw strong and healthy competition among the bidders. Ministry of Coal had launched the auction of coal mines for commercial mining on 18th June pursuant to a two stage forward auction process, wherein the bidders have to bid for the percentage revenue share over the reserve price.
The blocks put on auction by Ministry of Coal generated wide interest from bidders who had submitted their bids for various blocks on offer. The technical bids submitted were evaluated and the list of Technically Qualified Bidders was declared. Ministry of Coal has commenced the electronic auction of the coal mines for commercial purpose at 11 AM yesterday.
The Day 1 of e-auction has witnessed strong competition, with auction of some of the mines going on for more than 3 to 4 hours. In all the mines auctioned, the final offer received is above 10 percent signalling strong demand of coal mines in the market.