Government launches web portal to initiate e-auction process for 24 coal mines

Government has launched a web portal for initiating the e-auction process of 24 coal blocks/mines. This portal aims to make auction process transparent, efficient.
These 24 coal blocks fall under the first phase of coal block auction out of the total 92.
Among the 24 mines, 7 are reserved for the power sector while 16 for iron & steel sector and cement plants. While 1 mine is reserved for steel.
e-Auctioning process

• With the launch of portal, the registration process began. In the registration process interested bidders will register themselves as per KYC norms.
• Then the process will comprise techno-commercial bid for qualification and financial bid (e-auction) for selection of successful bidder.
• It should be noted that only 50 per cent of the qualified bidders from technical stage will be allowed to participate in the e-auction process.
• Mines allocated for power sector will be auctioned through ‘descending reverse auction’ in order to minimise the impact on power tariffs at end use. In this case qualified bidders will bid above the pre-determined floor price.
• For iron & steel, cement, blocks will be auctioned through ‘ascending forward auction’, where qualified bidders will quote incremental bids above the pre-determined floor price.
• Last date for receiving technical bids will be 31st January 2015 and list of qualified bidders will be placed on 12 February 2015. After this process, final e-auction of coal mines for qualified bidders will be held from 14-22 February, 2015.

Month: Current Affairs - December, 2014