Minimal qualification criteria for coal mining auction

The government has identified 15 large coal blocks for the pilot round of commercial bidding in December. These blocks will have a capacity to produce 4 million tonnes per annum. It is mulling to have minimal qualification criteria for companies to participate in the auction of coal blocks for commercial mining. 

“There will be minimal experience or net worth requirements for eligibility. The companies will be asked to submit upfront payment and bank guarantees like in the case of captive coal mines and this should take care of most of the concerns,” said a government official. Only companies registered in India can bid for commercial coal mines.