https://www.reuters.com/world/india/no-bids-over-70-indian-coal-mines-up-auction-2021-07-09/

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July 9, 20213:50 PM UTCLast Updated ago

India

No bids for over 70% of Indian coal mines up for auction

Sudarshan Varadhan

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2 minute read
A worker carries a container filled with drinking water at a railway
coal yard on the outskirts of the western Indian city of Ahmedabad
November 25, 2013. REUTERS/Amit Dave

A worker carries a container filled with drinking water at a railway
coal yard on the outskirts of the western Indian city of Ahmedabad
November 25, 2013. REUTERS/Amit Dave

CHENNAI, July 9 (Reuters) - India received no bids for 48 of the 67
mines up for sale as part of its plan to open up coal mining to
private companies, reflecting little investor appetite for a sector
clouded by environmental concerns and low margins.

Prime Minister Narendra Modi last year offered financial incentives
to the private sector and removed restrictions on the end-use of the
fuel in a bid to reduce imports and make India a net coal exporter.

India has the world's fourth largest coal reserves and is the second
largest coal consumer, importer and producer.

In a statement released late on Friday after a deadline for the
submission of technical bids, the coal ministry said only 19 of the
67 mines had drawn interest.

"Four of these mines are coking coal mines and the remaining 15
fifteen mines are non-coking coal mines," the ministry said.

Only eight mines received more than one bid, according to the
statement. Auction guidelines stipulated a minimum of two technical
bids for financial bids to be considered valid.

In the first coal mining auctions for the private sector without
restrictions on end-use of the fuel conducted last year, there were
no bids for nearly half of the 38 mines.

Production in India has largely been restricted to state-run Coal
India Ltd and another smaller government-controlled company.

While coal still accounts for over 70% of India's power production,
India has pushed a renewables policy which envisages increasing green
energy capacity more than four-fold by 2030.

Adani Power, Hindalco Industries (HALC.NS) and Vedanta Ltd (VDAN.NS)
were among the companies that submitted bids. No foreign miners took
part.

Reporting by Sudarshan Varadhan; Editing by Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles.

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