Site checks at mine blocks to identify likely auction issues

livemint.com:

NEW DELHI : The coal ministry has for the first time carried out ground verification of coal blocks ahead of commercial auctions in a bid to to attract investors.It has also prepared videos on the 40 major blocks that will go under the hammer in the 8th round of commercial auctions, set to be begin soon. The secretary to the ministry, Amrit Lal Meena, said a team was constituted under the Central Mine Planning & Design Institute (CMPDI) which visited the blocks to get to know the issues that may restrain investors from bidding.

“For the first time, a team has been sent for verification for 40 blocks...for the eighth round. The intention is to know if there is any problem on the ground, if there is forest cover or habitation and if there is a requirement to carve out that forest covered portion and make the block attractive.

We are also seeing if there is too large a block and if it can be divided into two or three blocks. After the verification, satisfactory reports have come from CMPDIL," Meena said in an interview.

He added that based on the surveys, the blocks have been modified and the number of blocks to be auctioned would go up due to bifurcation of large blocks. The official also said that all the details of the blocks are being uploaded on the PM Gati Shakti portal.

Mint recently reported that with investor interest in commercial coal mines flagging due to demand saturation and land acquisition problems, the government plans to offer smaller mines and carve out dense forests from the blocks along with looking at further lowering the upfront payment for taking up mining leases, especially in case of larger mines. “We are hopeful that the blocks being offered this time will receiver better investor interest," he