India's Odisha urges to defer coal block auction by three months
2020-09-24 09:11:28 [Print]
The State Government of Odisha on Tuesday urged the Centre to defer the e-auction of coal block by three months as the market is not conducive due to disruptions caused by Covid-19 pandemic.
In a letter to Union Coal Minister Pralhad Joshi, Steel and Mines Minister Prafulla Kumar Mallik said the coal prices in the market remain subdued as compared to last year in view of the extraordinary situation prevailing across the globe. "Going for e-auction of coal blocks in this situation may not attract better price from prospective bidders. As the coal blocks will be leased out for 30 years, low bid price will have adverse impact on coal revenue," Mallik said. He requested Joshi to give suitable instructions to authorities concerned to initiate the e-auction process when there is an improvement in the pandemic situation and market becomes suitable. Mallik's request to defer the coal block auction came a week before the closure of the technical bid on September 29.
The Centre had earlier extended the dates for submission of technical bids. According to the revised schedule, the last date for submitting a technical bid is 2 pm on September 29 and e-auction would be carried out for qualified bidders between October 19 and November 9.
The Coal Ministry has launched the auction process for 41 mining blocks spread over five states including Odisha having geological mines of 16,979 million tonne and a cumulative peak capacity of 225 million tonne per annum.
Of the 41 coal blocks, nine are located in Odisha. The blocks offered for auction in the State are Chhendipada I & II, Machhakata, Mahanadi, Radhikapur East & West, Brahmanbil, Kardabahal, Kuraloi (A) North, Phuljhari East & West. With Centre opening the coal sector allowing 100 per cent FDI, the State with its rich reserve will now be able to enter global competition.
In a letter to Union Coal Minister Pralhad Joshi, Steel and Mines Minister Prafulla Kumar Mallik said the coal prices in the market remain subdued as compared to last year in view of the extraordinary situation prevailing across the globe. "Going for e-auction of coal blocks in this situation may not attract better price from prospective bidders. As the coal blocks will be leased out for 30 years, low bid price will have adverse impact on coal revenue," Mallik said. He requested Joshi to give suitable instructions to authorities concerned to initiate the e-auction process when there is an improvement in the pandemic situation and market becomes suitable. Mallik's request to defer the coal block auction came a week before the closure of the technical bid on September 29.
The Centre had earlier extended the dates for submission of technical bids. According to the revised schedule, the last date for submitting a technical bid is 2 pm on September 29 and e-auction would be carried out for qualified bidders between October 19 and November 9.
The Coal Ministry has launched the auction process for 41 mining blocks spread over five states including Odisha having geological mines of 16,979 million tonne and a cumulative peak capacity of 225 million tonne per annum.
Of the 41 coal blocks, nine are located in Odisha. The blocks offered for auction in the State are Chhendipada I & II, Machhakata, Mahanadi, Radhikapur East & West, Brahmanbil, Kardabahal, Kuraloi (A) North, Phuljhari East & West. With Centre opening the coal sector allowing 100 per cent FDI, the State with its rich reserve will now be able to enter global competition.
