March 07

Govt cancels coal auction meant for open market sale

New Delhi: The government has cancelled the proposed auction of coal blocks in which winners would have been allowed to sell 25% of the production in the open market. It was postponed five times after notice inviting tenders were issued in November. 

Official sources said there was some discrepancy between the tender documents, which led to the cancellation. 

The government had clarified that the successful bidder shall be required to pay an additional premium of 15% of its final bid price for coal sold in the open market. However, this was not clear in the tender documents, sources said. 

"We will take it up later. New dates are yet to be decided," the official said.  

Last week, the government invited request for proposals from transaction advisor who will assist the Nominated Authority in allotment and auctioning of coal mines. It also invited request for proposals to carry out valuation of land for coal mines. 

In a notice on MSTC website which was scheduled to hold the auctions, the government has informed bidders that the 6th tranche and 7th tranche of auction of coal mines pursuant to clause 5.13 and clause 9.3.2 (a) of the tender document, bidders may kindly note that the 6th tranche and 7th tranche of auction stands cancelled.

Under the 6th tranche, the Centre was to auction blocks including Brahampuri, Bundu, Gondkari, Gondulpara, Jaganathpur - A, Jaganathpur - B, Khappa & Extn., Bhaskarpara, Marki Mangli - IV, Sondiha, Chitarpur, Jamkhani, and Gare Palma IV /1. 

Under the 7th tranche, the Centre was planning to auction blocks including Brahmadiha, Choritand Tilaiya, Jogeshwar & Khas Jogeshwar, Rabodh, Rohne, and Urtan North.

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