Bhubaneswar: After Prime Minister Narendra Modi inaugurated the auction process of coal blocks for commercial mining, Odisha is set to attract huge investment from big players in the mining and allied sectors.
The new auction process will cover 41 mining blocks spread over five states including Odisha having geological mines of 16,979 million tonne and a cumulative peak capacity of 225 million tonne per annum.
Five mines of over 10 million tonne per annum capacity and nine blocks with peak capacity of 5-10 million tonne will be on offer.
Of the total coal blocks, nine are located in Odisha. Those are Chhendipada I & II, Machhakata & Mahanadi, Radhikapur East & West, Brahmanbil & Kardabahal, Kuraloi (A) North, Phuljhari East & West.
According to sources, though the government has offered small and medium blocks, companies like Adani Group, Vedanta Resources, and JSW Steel will vie for bigger blocks like Chhendipada I & II, Machhakata & Mahanadi, and Phuljhari East & West.
With global firms under 100 per cent FDI allowed to participate in the bidding, Odisha with its rich reserve will now be able to enter global competition. That means investment in mining in small measures will be a thing of the past.
The auctions will be based on revenue share basis. Companies that start early production will be offered 50 per cent rebate on revenue share payable to the government. A rebate of 50 per cent of revenue share is also proposed on coal produced in excess of the scheduled target in a financial year.
The bidding process that will be held in two stages has begun with the government issuing global tenders. The coal ministry will hold meetings with potential bidders between June 25 and July 18 before the bidding and the last date for bid submission is August 18.
Also Read: PM Launches Auction Process Of 41 Coal Blocks For Commercial Mining
