The Centre will kick start the process of offering de-allocated coal blocks to state-owned entities on Wednesday with Central and State Public Sector Units getting to cherry pick from the 17 assets available in the first round.

Minister for Coal, Power, and New & Renewable Energy Piyush Goyal told BusinessLine that his team has developed a transparent and foolproof system and the coal mine details will be available on Wednesday.

Notices will be sent to companies to assess the blocks, and a timeline for the completion of the entire process will be given. These blocks are meant for the power sector.

The companies will need to pay a fixed reserve price of ₹100 per tonne, payable as per the actual production. The yearly escalation of the reserve price will be based on the formula spelt out in the Standard Bid Documents.

In addition, the PSUs will also be required to pay the statutory royalty and the upfront payment (to compensate the previous allocattee) as per the allotment document.

In the first phase, 41 producing mines are being offered for allocation and auctions. On February 15, the Centre will put 24 blocks on auction. In that round, both public and private sector players can participate.

By January 31, bidders need to send in a technical bid with a price offer for qualification. Only half the qualified bidders (subject to a minimum of five) will then be allowed to participate in the financial bid stage.

The list of qualified bidders will be placed on the MSTC website on February 12. By March 23, the Coal Ministry expects to conclude the process.

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