SBI Capital assists in coal auction
The next tranche of commercial mines auction would be launched in January 2021, following on to the allocation of 19 mines in the first commercial auction, Coal & Mines Minister Pralhad Joshi said on 11 Jan 2021 in New Delhi.
“We have reformed the coal, and now coal will transform the nation,” he said. “I appeal to all states to facilitate the opening of all these mines so that India could make use of its abundant coal resources. It will help our nation become Aatmanirbhar in Coal.”
The success of India’s first ever commercial mining auctions will help reduce India’s coal import by about 20%.
SBI Capital Markets Limited, sole Transaction Advisor to Ministry of Coal for the commercial coal mine auction, had devised the methodology and assisted Ministry in conduct of the auction.
Notably, the 19 mines would generate a revenue of Rs.6,656 crores annually. With fierce competition in the auction, the highest premium remained at 66.75% and the average premium at 27%. These mines are in Madhya Pradesh, Chhattisgarh, Odisha, Jharkhand and Maharashtra with consolidated Peak Rated Capacity (PRC) of 51 Million Tonnes Per Annum.
Home Minister Amit Shah launched Single Window Clearance Portal of Coal Ministry to expedite the mine allocation.
Presently, about 19 major approval or clearances are required to be obtained before starting a coal mine in the country. These include approval of Mining Plan and Mine Closure Plan, Grant of Mining Lease, Environment and Forest Clearances, Wild Life Clearance, Clearances related to Safety, Environment, Rehabilitation of project affected families, welfare of workers etc. These approvals or clearances are granted either by central or state governments.
In the absence of a unified platform for grant of clearances and approvals for starting of a coal mine, the project proponents are required to approach different administrative ministries and Government departments separately to apply for the requisite clearances leading to delay in operationalization of coal mines.
Now, the complete process shall be facilitated through Single Window Clearance Portal, which will map not only the relevant application formats, but also process flow for grant of approval or clearances.
The portal’s Mining Plan module was launched on 11 Jan 2021 and modules related to other clearances will be added in phases.
Minister Joshi also said that based on the experience of various mineral rich states and feedback received from the stakeholders, the government will also bring out structural reforms in the mining sector. These reforms will generate huge employment opportunities and increase the production of minerals leading to self-reliance.
He further said that the upcoming reforms will unleash the potential of mining sector in India. #tenders #coal #OPEC #manufacturing #investment #mining #projects /fiinews.com
