Methodology for auction of coal and lignite mines/blocks for sale of coal/lignite on revenue sharing basis was approved by CCEA on 20.05.2020 and the order was issued on 28.05.2020. Salient features of the Methodology are as under:
Coal India Limited (CIL) is the largest company in the world in terms of coal production. CIL sells coal to its linked Power and non-Power consumers through bilateral Fuel Supply Agreements and Memorandums of Understanding. CIL also sells coal to the end consumers including traders through various e-auction schemes.
Imported coal constituted 23.7% of the actual demand of coal during the year 2020-21.
As per the provisions of the Coal Mines (Special Provisions) Act, 2015 [CMSP Act] and the Mines and Minerals (Development and Regulation) Act, 1957 [MMDR Act], coal mines are allocated to private sector companies by way of auction. Auction of coal mines is done on e-platform after conducting security audit of the e-platform. Further, any prior allottee who is convicted of an offence relating to coal block allocation and sentenced with imprisonment for more than three years is not eligible to participate in the auction.
News Source : PIB