The much-anticipated auctions for coal mines for commercial mining continued on the second day on Tuesday with four mines being put on the block.
The government successfully concluded auctions of five coal mines under the commercial route on the first day of bidding on Monday.
According to the Coal Ministry, the mining blocks put on e-auction on the second day witnessed strong competition amongst the bidders with all mines attracting good premiums over the reserve price.
The Andhra Pradesh Mineral Development Corporation has put the highest bid for Brahmadiha mine in Jharkhand, while Emil Mines and Mineral Resources Ltd was the highest bidder for Bandha mines in Madhya Pradesh.
Stratatech Mineral Resources was the highest bidder for Dhirauli mines in Madhya Pradesh and the fourth mine Sahapur West, also in Madhya Pradesh, saw Sarda Energy and Minerals emerging as the highest bidder.
The total geological reserves of the mines put up for auction on second day are 1,085 million tonne (mt) with a cumulative production potential of about 9 mt per annum. The annual revenue generation from these mines based on peak rated capacity is over Rs 1,400 crore.
The Coal Ministry had launched the auction of coal mines for commercial mining on June 18, pursuant to a two stage forward auction process, comprising of initial offer and final offer, wherein the bidders have to bid for the percentage revenue share over the reserve price.
In all the mines auctioned, the final offer received is above 10 per cent and increases close to 50 per cent signalling strong demand of coal mines in the market.