Mumbai | Apr 21, 2015: The government after garnering over Rs 2 lakh crore by auctioning off 29 blocks in two phases, may start the third round of coal mines auction as soon as next month and may come out with a notice inviting application for the mines for the next round of auction next week.

Coal Secretary Anil Swarup has said that most of the clearances of the coal blocks to be auctioned in the third round are there. The ministry may put up 23 blocks this time, earlier it was said that Coal Ministry will put up 16 mines in the third round, 11 in regulated and five in unregulated sector. The auction methodology would remain the same as in the earlier tranches. For the power sector mines it would be reverse bidding and forward bidding for the unregulated sectors.

In the current auctioning, monies to state governments accrued from two income streams - royalty at 14 per cent of the comparable Coal India grade price and the per-tonne price quoted in the winning bid. Swarup had earlier said that that states will receive Rs 466 crore as first tranche, while the Centre will not keep any revenue from the upfront payment by bidders. Once mining begins, state governments will also make additional sums from royalty. But this amount from operating mines accrued earlier too, as royalty rates are governed by regulations existing previously.

After the third tranche of auctions is over, the coal ministry is expected to commence allotment of coal blocks to mining PSUs of different states for selling fuel to coal-starved utilities.

(Source: http://money.livemint.com/)