The argument assumes significance as a result of the Jharkhand government’s apprehension that investors will not come to auction commercial coal mining as a result of the coronavirus pandemic
The auction process for commercial coal mining witnessed a “very good start” and the response was the best in the history of domestic coal mining, Coal Minister Pralhad Joshi said. A total of 1,140 entities, including international players, participated in the technical session following the launch of the block sales, and 26 companies bought tender documents and 10 firms – domestic and foreign – showed interest in the mining visit, he added.
The assertion assumes significance as a result of the Jharkhand government’s fear that investors will not come to auction commercial coal mining as a result of the coronavirus pandemic.
“We launched commercial coal mining on June 18. The Prime Minister has blessed this occasion. And after that there was a technical interaction session. Only interested people come there. 1,140 people joined (the technical session). And out of that (1,140 people) more than 50 to 60 people were international players,” Joshi said.
Within eight days of the start of the auction process, there were 329 registrations and 26 tender documents were sold for Rs 5 lakh each, the Minister said.
Approximately 10 firms, including international players, have shown interest in visiting mines placed on sale, he said.
“Within a week’s time this is the best in the coal history of India. I am quite confident that in another coming 20-30 days further there will be improvement in this. According to me this is the best response. It is a very good start,” the minister said.
Of the 41 blocks that are being auctioned for commercial mining, the Center is withdrawing a Bander mine in Maharashtra as it falls within an eco-sensitive zone.
The Center is also considering the proposal of the Chhattisgarh Government to replace four coal blocks for commercial mining auctions.
The Jharkhand Government has moved the Supreme Court to challenge the Centre ‘s ambitious scheme, launched by Prime Minister Narendra Modi on 18 June for a virtual auction of coal blocks for commercial mining.
In its appeal, the Jharkhand Mukti Morcha-led government sought guidance from the Ministry of Coal to postpone the planned commercial auction of the mines.
“The negative ‘global investment climate’ prevailing due to COVID-19, which is unlikely to fetch reasonable returns proportionate to the value of the scarce natural resource through the impugned auction for commercial coal mining,” the plea said.
These blocks, spread across Odisha, Jharkhand , Madhya Pradesh, Maharashtra and Chhattisgarh, are expected to provide employment to 2.8 Lakh people and contribute Rs 20,000 crore revenues annually to state governments.
