8 tranche of auction - mstc e-commerce · a. queries and responses to standard tender document of...

8th Tranche of Auction

Queries & Responses

to

Standard Tender Document

Part 1

Nominated Authority

Ministry of Coal

Government of India

New Delhi

September 02, 2019

8th Tranche of Auction – Queries & Responses

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A. Queries and Responses to Standard Tender Document of Coal Mines Being Auctioned in 8th

Tranche

S. No. Query Response

1 Clause 1.1.13

“CIL Notified Price” shall mean the prevailing notified price of relevant grade(s) of coal by CIL or any of its

subsidiaries, as may be territorially relevant to the Coal Mine, as on the date of sale of coal.

There is a reference to territorial relevance. This should be clearly defined to avoid any doubt. Actual

grades of coal being shipped should be taken. Also, it should be clarified whether CIL notified price

would include royalty, taxes, levies etc.

As per Clause 1.1.13 of the Tender Document.

CIL Notified Price is ROM price and does not include Royalty, taxes, levies etc.


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2 Clause 1.1.38

“Specified End Use Plant” shall mean a plant owned by the Bidder or each of the JV Partners (in case the

Bidder is a joint venture Company), located in India and engaged in the Specified End Use

Clause 2.3.1

“Specified End Use” defines as utilization of coal in production of iron and steel, cement and generation

of power for captive use [excluding steel (coking)]

Clause 4.1 Eligibility Conditions

The tender document does not define Captive Use & Captive Power Plant. Same needs to be defined as

per the meaning ascribed under Electricity Act 2003 and Electricity Rules, 2005.

Kindly confirm that the Bidder meeting ownership criteria for Captive Power Plant as per Rule 3 of

Electricity Rules, 2005 will be eligible to participate for the coal mine auctions for such End Use Captive

Power Plant.

1.1.38 “Specified End Use Plant” shall mean a plant owned by the Bidder or each of the JV Partners (in

case the Bidder is a joint venture Company), located in India and engaged in the Specified End Use. This

will also include Captive Power Plants setup under the provisions of Electricity Act 2003 & meeting

ownership criteria under Electricity Rules 2005.

4.1 Eligibility Conditions – to include: “a company meeting ownership criteria under Electricity Rules

2005 for End Use Captive Power Plant will be eligible to bid for any coal mines”

Rule 3(2) (b) of the Electricity Rules, 2005 (Electricity Rules) provides the following definition for Captive

Use: .. “captive user” shall mean the end user of the electricity generated in a Captive Generating Plant

and the term “captive use” shall be construed accordingly.”

The Section 2(8) of the Electricity Act, 2003 defines “Captive Generating Plant” i.e. means “a power

plant set up by any person to generate electricity primarily for his own use and includes a power plant

set up by any co-operative society or association of persons for generating electricity primarily for use of

members of such cooperative society or association.”

Rule 3 of the Electricity Rules mandates having the below mentioned two criteria for any Power Plant to

qualify for Captive Generating Plants:

(i) not less than twenty six percent of the ownership is held by the captive user(s), and

(ii) not less than fifty-one percent of the aggregate electricity generated in such plant, determined on an

annual basis, is consumed for the captive use:

The word ownership is explained in sub-rule (2), for clause(c) of Rule 3 of Electricity Rules as:

“Ownership” in relation to a generating station or power plant set up by a company or any other body

corporate shall mean the equity share capital with voting rights. In other cases, ownership shall mean

proprietary interest and control over the generating station or power plant

Thus, the Bidder meeting above ownership & consumption criteria for Captive Power Plant should be

allowed to participate in the coal mine auctions for utilization of coal from auctioned mines to produce

electricity from such Captive Power plant for its own use.

No. As per Section 4(3)(a) of the Act, Bidder should be a company engaged in specified

end use. Further, as per Clause 1.1.38 of the Tender Document, Bidder or JV Partners

(in case the Bidder is a JV Company) should be the owner of the Specified End Use

Plant.


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3 Clause No 2 Introduction and the Notice Inviting Tender

Rule 8(2) Order, allows the Central Government to specify the end use in case of any Schedule II coal

mine or Schedule III coal mine.

Powers of Nominated Authority to Add or Delete any mine Out of the list of blocks offered for Iron &

Steel, CPP and Cement, there are very few coal blocks (1or 2) which are really lucrative and shall attract

most of the prospective bidders. This will generate unhealthy competition which will result into

unjustified prices.

Also, there is a severe imbalance between the Statewise Industries (Sponge Iron & CPP) and Coal Blocks

offered. There are many NRS industries in Odisha but offered coal block is only one i.e. Jamkhani. --

More of such lucrative mines to be added to avoid convergence and to avoid un-healthy competition.

Tranche 8th, 9th and 10th is being conducted for the coal mines as listed vide list of

mines dated August 3, 2019 (uploaded on the website

https://www.mstcecommerce.com/auctionhome/coalblock/index.jsp).

For future tranches of auction, bidders are advised to regularly check the website of

Ministry of Coal.

4 Clause No 2.3 The Coal Mine

Rule 8(2) Order, allows the Central Government to specify the end use in case of any Schedule II coal

mine or Schedule III coal mine.

The Central Government for the process of granting Fuel Supply Agreement through e-auction (coal

linkage) has already identified the class of specified end uses such as pellet plant, Rolling Mill, their

Gasifiers and Ferro Alloys under the Non Regulated Sectors.

The inclusion of other Non regulated sectors (others) in case of coal mine auctions will help in achieving

the eligibility criterion of medium level bidders and increase the availability and security of coal.

The higher number of bidders will enhance the competition and thereby the premium.

Rule 8(2) Order, allows the Central Government to specify the end use in case of any

Schedule II coal mine or Schedule III coal mine.

As per Clause 2.3.1 of the Tender Document, the Coal Mine is being auctioned strictly

for the purpose of utilisation of coal for the specified end use as mentioned in the Rule

8(2) Order, which is production of iron and steel, cement and generation of power for

captive use [excluding steel (coking)] (the “Specified End Use”). Further, as specified in

Clause 10.1(3)(3) of the Tender Document, Coal requirement of any other upstream

and downstream products and corresponding plants like rolling mill, sinter plant,

producer gas plant, iron ore pellets, ferro alloys, rolled and structural steel, other steel

products, washery and transit losses, etc. shall not be considered for the purpose of

determination of eligibility.

5 Clause No 2.3. The Coal Mine

For production of iron & steel, are the captive power plants for other class of specified end uses like CPP

for Ferro Alloys Plant also covered in the said Specified End Use i.e. generation of power for captive use.

As specified in Clause 10.1(3)(2) of the Tender Document, where captive power is

utilised for the production of iron & steel as end-use including production of upstream

and downstream products, then total coal requirement for such captive power plant

can be considered for the purpose of determination of eligibility.

6 Clause 3.2

3.2.1 In order to participate in the tender process, each Bidder shall be required to make a non-

refundable payment of INR 5,00,000 (Indian Rupees Five lakhs) with respect to each Bid....

Some of the prospective bidders have purchased the mine dossier for the earlier auction processes by

making a payment of Rs. 5,00,000 Lakh but the auction didn’t took place. Do we have to again pay Rs.

5,00,000 for the mine dossier?

Yes. As per Clause 3.2.1 of the Tender Document, prospective bidders will have to pay

the tender fee of Rs. 5 lakh per mine for participation in auction of coal mines under

this tranche.


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7 Clause 3.3 Description of the Tender Process

This clause effectively makes it a three stage process thereby denying an opportunity to certain bidders

from participating in the financial bid even though they may be technically qualified. A process of this

nature will only result in limiting of competition.

The bid process should be kept as a simple two-stage bid process. No Initial Price Offer should be

required during the Technical Bid submission stage. It is recommended that instead of 1/3rd bidders

being eliminated, all the technically qualified bidders should be allowed to participate in the auction on

the electronic platform.

Ranking & Qualification shall be as per Clause 3.3.2(b) of the Tender Document

8 Clause 3.3.2(b)

With respect to 1 (one) Specified End Use Plant, only 1 (one) Bid may be submitted for the Coal Mine,

either individually or as a part of joint-venture, either directly or

indirectly.

Clarification required regarding the following illustration:

JV Partner ------ JV Company A ---- End Use Plant ---- JV Company B ---- End Use Plant

PARTNER-1 ----- U ----- Unit-1 ------ U ----- Unit-2

PARTNER-2 ----- T ----- Unit-2 ------ T ----- Unit-1

PARTNER-3 ----- V ----- Unit-1 ------ K ----- Unit-1

In the above illustration, all the JV Partners are submitting their bids for different EUPs in the same mine

as partners of JV Companies A & B, in which U & T are part of same Group Company. JV Partners V & K

are different.

Therefore, please clarify the process of Ranking, Clustering and determination of Qualified

Bidder/Available Slots for participating in the electronic auction and eligibility to submit a Final Price

Offer, as this is not clear in the Tender Document.

As per Clause 3.3.2(b) of the Tender Document.


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9 Clause 3.3.2(e)

Preferred Bidder not to become Successful Bidder in certain cases- Notwithstanding the above, in the

event that the Nominated Authority or the Central Government determines that a Preferred Bidder ….

As per the current interpretation of the Clause, it seems that Central Government/ Nominated Authority

don’t need any valid reason for termination of the process for a particular Bidder and prevention of the

Preferred Bidder being selected as Successful Bidder. This can cause investor confidence reduction as

well as lead to additional legal tussles between parties. In such a case, the Preferred Bidder also faces a

challenge of being left out from rest of the mines in the Tranche as the Bidder has tied up the mine

under the current round.

As per Clause 3.3.2(e) of the Tender Document, "in the event that the Nominated

Authority or the Central Government determines that a Preferred Bidder should not

be declared the Successful Bidder on account of any reason whatsoever, including

without limitation the withdrawal of the Preferred Bidder from the auction process for

the Coal Mine or the Preferred Bidder ceasing to comply with the Eligibility Conditions,

then the tender process shall stand terminated and the Nominated Authority shall

have the power to re-initiate the tender process in accordance with Rule 10 of the

Rules, provided the Nominated Authority has not received any other Rule 8(2) Order

from the Central Government."

10 Clause 3.3.2(g)(ii): Payment by the Successful Bidder

We understand that the applicable Fixed Amount will be uploaded by the Competent Authority as part

of Tender Document.

Fixed Amount shall be provided shortly.

11 Clause 3.3.2(g)(ii)

“Any upward revision in the Fixed Amount on a subsequent date by the Government or the Nominated

Authority consequent upon any process or on the orders of any competent court of law, shall also be

payable by the Successful Bidder”.

Fixed amount should remain fix once notified in tender document. We Request for this to be restricted

to the fixed amount provided prior to initiation of the bidding process as the viability of the bid will

depend on the same.

As per the Clause No. 3.3.2 (g) (ii) of the Tender Document, the Fixed Amount is based

on the available information and the assessment made by the competent authority

and is uploaded as a part of the Tender Document. Any upward revision in the Fixed

Amount on a subsequent date by the Government or the Nominated Authority

consequent upon any process or on the orders of any competent court of law, shall

also be payable by the Successful Bidder.


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12 Clause No 3.3.2 (g) (ii) Payments by the successful bidder

……….pay a fixed amount for the value of Land and Mine Infrastructure, cost of………….Any upward

revision in the Fixed Amount on a subsequent date by the Government or the Nominated Authority

consequent upon any process or on the orders of any competent court of law, shall also be payable by

the Successful Bidder

It must be clarified that upon payment of the amounts mentioned in this clause, the legal and beneficial

ownership of the land, infrastructure, mining lease, statutory licenses, consent, permits, consents,

approvals, etc. shall vest in the Successful Bidder without any encumbrances and without any delay. It

should also be clarified the successful bidder shall be insulated against costs and litigation in respect of

the above for the period prior to the issuance of the Vesting Order.

The Successful Bidder should be compensated in case there is delay in transfer of land, mine

infrastructure, mining lease, statutory licenses, consent, permits, consents, approvals, etc.

Is there any mechanism to get the Fixed Assets verified by any third party and accordingly being

included in the Fixed Amount?







Vesting Order shall be issued in accordance with Clause 4 of the CMDPA and Section 8

of the Act.

13 Clause No 3.3.2 (g) (ii) Payments by the successful bidder

In order dated 23.07.2019 W.P.(C) 7912/2019 at the high court of Delhi, The learned ASG stated that the

compensation is being re-determined and will be disbursed within a period of three months.

Will this increase the fixed amount? If yes, will the Ministry be able to re-determine the same and notify

the bidder regarding the revised fixed amount prior to Conduct of electronic auction (Financial Bid) for

the Qualified Bidders i.e. before Thursday, 10 October 2019. Determination of Cost of production

depends upon the capital investment made on the coal block.

The order dated 23.07.2019 W.P.(C) 7912/2019 at the high court of Delhi, was speciifc

to the Chotia coal block which has been already allocated for sponge iron.








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14 Clause 3.3.3

Number of Minimum Bidders

In the event that the aggregate of total number of independent Technically Qualified Bids and/or Cluster

in IPO round is less than 3, then no Technically Qualified Bid shall be considered to be Qualified Bid(s)

and the tender process for the Coal Mine shall stand annulled.

It should be modified in line with Mineral Block Auctions:

In the event that the aggregate of total number of independent Technically Qualified Bids and/or

Cluster in IPO round is less than 3, then no Technically Qualified Bid shall be considered to be Qualified

Bid(s) and the tender process for the Coal Mine shall stand annulled in first attempt. However, in

subsequent attempt, the bidding shall continue even if the number of Technically Qualified bid is less

than three (3).

Can the requirement of minimum bidders be reduced to 2 instead of 3?


15 Clause 3.4 Test of Responsiveness

Prior to evaluation of the Technical Bid, the Nominated Authority shall determine whether each

Technical Bid is responsive to the requirements of this Tender Document. The Nominated Authority

reserves the right to reject any Technical Bid which is non-responsive and no request for ...

Bidder should be asked for an explanation and make the bid responsive failing which he should be

rejected.

As per Clause 3.4 of the Tender Document. However, the Nominated Authority

reserves the right to seek supplemental information for evalaution of bids in

accordance with Clause 5.6.2(b) of the Tender Document.

16 Clause 3.8 Schedule of the Tender Process

The time for Bid Due date may be suitably extended as the tender process started in early August and

some documents are yet to be uploaded. Hence, sufficient time is required for evaluation.

As per Clause 3.8 of the Tender Document.


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17 Clause 3.9: Upfront Amount

1. How will the upfront amount be calculated? The Tender document mentions payment schedule of

the upfront payment, however it does not specify how the upfront payment will be calculated?

2. The Upfront Amount may be at a lower value at 1%-2% of the value of the mine?

3. It may be allowed to be adjusted against future payments to the State Government.

4. The schedule of payment of the three instalment of the Upfront Amount may be reviewed. All the

three payment of the Upfront Amount may be realised upon the mine coming into production.

5. In case of termination, is the upfront amount refundable or not?

1 & 2. The methodology for determination of intrinsic value and Upfront Amount for

auction of coal mines has been published vide Ministry of Coal's Order No.

13016/9/2014-CA-III dated December 26, 2014. The same may be accessed from the

website of Ministry of Coal.

As per the said methodology, the Upfront Amount is 10% of the intrinsic value of the

coal mine. Upfront Amount for each mine has been provided in the mine-specific

Tender Document.

3 & 4. The payment of the Upfront Amount shall be done as per Clause 3.9 of the

Tender Document.

5. In accordance with Clause 24.3.3 of the CMDPA, in case of a termination of the

CMDPA, the Performance Security and all other payments made by the Successful

Bidder shall be forfeited.

18 Clause 3.10.1

“In addition to the payments specified in Clause 3.3.2(g), the Successful Bidder shall be required to make

monthly payments with respect to the coal extracted from the Coal Mine on the basis of the Final Price

Offer pursuant to which the Successful Bidder has received the Vesting Order.”

1. Clarification is required on how the Final Price Offer on Coal extracted from the Coal Mine (i.e., on

tonnage of ROM produced), be levied in case the Coal washery is inside the Lease and processed coal is

taken outside the lease.

Since Final Price Offer is linked with ROM Coal extraction by successful bidder, it is not clear how it is

calculated when processed coal to be weighed and taken out from the lease instead of ROM Coal.

(Payment of Royalty on processed coal will not be of any issue)

2. Royalty payment shall be considered only for the coal despatched or sold. Need clarification. As per

practice, the royalty, DMF & other levies are paid only for the coal despatched from the mine. This

clarification may please be made.

The Final Price Offer shall be payable on ROM basis on the actual coal prodcution from

coal mine.

The calculation of royalty, cess, levies and other such payments shall be as per

Applicable Law.


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19 Clause 3.10.2

The Monthly Payment shall be subject to an escalation every financial year, on the basis of the Reference

Index and the Monthly Payment shall stand increased by the per cent increase of the Reference Index on

a year-on-year basis.

Coal prices are dynamic and are impacted by demand & supply in domestic and international markets,

changes in technology and fiscal regimes. Further, it may be appreciated that input costs of coal

production viz. salary & wages, spares, fuel and lubricants, repair and maintenance will keep on

escalating, at the same time coal price may go down. Hence, in the interest of economic viability of coal

blocks in future, Final Price Offer for the Coal blocks may be kept fixed and not linked to WPI.

Since the coal index and other features will be added in the upcoming tranches, will the proposed index

be applicable for this tranche?

No. As per Clause 3.10.2 of the Tender Document.

20 Clause 4.1.1. (ii)Eligibility Condition for schedule III mine

To be eligible to bid for a Schedule III mine, if the end use project being commissioned in units or

phases, can the EUP be considered if any of its unit has not incurred thirty percent expenditure for such

unit or phase?

No. As per the Clause 4.1.2(e) of the Tender Document,

"For participation in the auction process of Schedule II Coal Mines, in case of Specified

End Use Plant which has been developed or is being developed in units or phases, and

one or more units or phases are eligible on the basis of having made an expenditure of

eighty per cent of the total project cost, then the other units or phases of such project

shall also be eligible, if with respect to each such other units or phases an expenditure

of at least forty per cent of total project cost has independently been incurred and a

certificate is provided to substantiate such expenditure for each such other units or

phases, in the manner provided above.

For participation in the auction process of Schedule III Coal Mines, in case of Specified

End Use Plant which has been developed or is being developed in units or phases, and

one or more units or phases are eligible on the basis of having made an expenditure of

sixty per cent of the total project cost, then the other units or phases of such project

shall also be eligible, if with respect to each such other units or phases an expenditure

of at least thirty per cent of total project cost has independently been incurred and a

certificate is provided to substantiate such expenditure for each such other units or

phases, in the manner provided above."

21 Clause 4 Eligibility Criteria

The technical qualification requirement does not consider the financial strength of the Bidder. In order

to qualify a Bidder as an ‘Eligible Company’, a minimum net-worth requirement should be stated

upfront.

No. Eligibility Conditions shall be as per Clause 4 of the Tender Document.


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22 Clause 4.1.2(a)

Additional conditions for Prior Allottee

In addition to the aforementioned conditions, a Bidder would also be required to comply with the

following eligibility conditions: (a) Additional conditions for Prior Allottee: In the event the Bidder is a

Prior Allottee, then such Bidder must also meet the following conditions for being eligible to participate

in the tender process: (i) The Bidder who is a Prior Allottee must have paid the additional levy within the

time period prescribed under Rule 18 of the Rules. It is clarified that if a Prior Allottee has not made

payment of the applicable additional levy within the time prescribed under Rule 18 of the Rules, then

such Prior Allottee, its promoter or any of its company of such Prior Allottee shall not be eligible to

participate in the auction process either directly or indirectly, including without limitation as a JV Partner

of a joint venture, or through any Affiliate.

Clarification required as to the restriction imposed on prior allottee

As per Clause 4.1.2(a) of the Tender Document. In case the Bidder is a prior allottee as

per the Act and doesn’t comply with the conditions specified in Clause 4.1.2(a) of the

Tender Document, such Bidder shall not be considered eligible under the tender

process.

23 Clause 4.1.2 (b)

Eligibility on the basis of coal requirement

(ii) For the purposes of this Clause, the annual coal requirements of the Specified End Use Plant would be

determined on the basis of a certificate from the Bidder regarding its entire coal requirements at 85%

plant load factor or capacity utilization as the case may be Extractable reserves of the Coal Mine should

not exceed 150% of the annual coal requirement of the Specified End Use Plant(s), taken over a period of

30 (thirty) years,……..

In case of captive power plants, whether the coal requirement for the Specified End Use Plant will be

determined based only on 51% of annual generation (which is the minimum requirement for captive

user under the Electricity Rules) at 85% PLF or, whether coal requirement corresponding to 100%

generation from the Specified End Use Plant may be taken into account irrespective of the quantum of

energy supplied to the captive users in an year? Kindly clarify the same.

As per aggregate annual consumption criteria to qualify as a Captive Generating Plant under Section 2(8)

of the Electricity Act, 2003 read with the Electricity Rules, 2005, captive power plant has to supply

minimum 51% of annual generation to captive consumer in order to maintain captive status. Therefore,

clarification sought to understand whether the annual coal requirement of the specified end use plant

would be based only on 51% of annual generation @ 85% PLF or coal requirement corresponding to

100% generation from the Specified End Use Plant may be taken into account irrespective of the

quantum of energy supplied to the captive users in a year. Accordingly Annexure III format should also

be suitably modified.

Normative coal requirement of the specified end use plant would be determined at

85% plant load factor or capacity utilisation in accordance with Clause 4.1.2(b)(ii) of

the Tender Document.


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24 Clause 4.1.2 (b)(ii)

For the purposes of this Clause, the annual coal requirements of the Specified End Use Plant would be

determined on the basis of a certificate from the bidder regarding its entire Coal requirement at 85%

Plant Load Factor or capacity utilization as the case may be.

Considering the Aluminium Business, instead of 85% PLF, it is recommended that PLF of 95% be

considered for calculating coal requirement.

As per Clause 4.1.2(b)(ii) of the Tender Document.

25 Clause 4.1.2(b)

It is clarified that a Bidder shall not be eligible to participate in any other auction process conducted by

Nominated Authority for the same End Use Plant if such participation may result in the Bidder holding

coal mines capable of generating in excess of 150% of its annual coal requirement.

Bidder needs a clarity that it will be allowed to participate for multiple coal mines for a specified end use

plant till the time it wins coal mine (s) having extractable reserves sufficient to meets its quote of 150%

of coal requirement.

In this case, the bidder (who has no coal mine as on date) would be allowed to participate in bids for

multiple coal mines having an aggregate extractable reserve over 150% of coal requirement.

For example: The requirement of Bidder A is 100 MT. As per the Clause 4.1.2 (b), the quote for Bidder A

will be 150 MT. There are two mines- Mine X having extractable reserve of 80 MT and Mine Y having

extractable reserve of 90 MT. Based on our interpretation, the Bidder A is eligible to bid for both the

mines with an aggregate extractable reserve of 170 MT. The interpretation is based on the fact that the

Bidder A does not own any mine as on Bid Due date and independently qualify to bid for both the

mines.

The Nominated Authority is requested to confirm our understanding.

As per Clause 4.1.2(b) of the Tender Document.

In the example cited, considering that both the mines are of same grade and bids have

been submitted for same Specified End Use Plant, the Bidder can submit its Technical

Bid and Initial Price Offer for both mines. However, in case the Bidder emerges as the

Preferred Bidder by virtue of submitting the highest Final Price Offer in the auction of

first of the two mines, then the Bidder shall not be eligible to participate in the e-

auction (i.e. submission of Final Price Offer) of the second mine.


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26 Clause 4.1.2 (c) Additional Eligibility conditions for Bidders which is a Joint Venture and Clause

4.1.2(d)

In case a bidder is interested in two coal mines for a specified end use plant- One the bidder is eligible

for bidding independently whereas for other the bidder is eligible through a JV.

In this case, the Nominated Authority is requested to clarify that will the bidder be allowed to

participate in bid processes for both coal mines as long as it meets the requirement in respect of 150%

of its coal requirement?

The bidder should be provided with this flexibility. In case the policies/ understanding of the document

would be in line with past rounds, it is requested that the same can be mentioned in the tender

document/clarifications for clarity of bidders.

Yes. As per Clause 4.1.2(d) of Tender Document, with respect to 1 (one) Specified End

Use Plant, only 1 (one) Bid may be submitted for any particular coal mine, either

individually or as a part of joint-venture, either directly or indirectly. However, the

Bidder may choose to submit its Bid for one of the mine as an independent company

and for other as a JV Partner, subject to compliance with the Eligibility Conditions

stipulated in the Tender Document.

27 Clause 4.1.2(c) Additional Eligibility conditions for Bidders which is a joint-venture

1. Is there any minimum paid up capital requirement for the JV?

2. Can the JV partner be added at a later stage?

1. No. The Bidder, in case of Joint Venture, shall have to be eligible as per the Clauses

4.1.2 (c) and 5.2 of the Tender Document.

2. Change in Control & Transfer prior to determination of Successful Bidder shall be

permitted in accordance with Clause 5.3.2 of the Tender Document. Change in Control

& Transfer post determination of Successful Bidder shall be as per the provisions of

Clause 13 of CMDPA.

28 Clause 4.1.2(e)

It is clarified that in case the Specified End Use Plant is operational, Bidders are required to submit either

i) a certificate from statutory auditor confirming the Specified End Use Plant is operational and its

capacity or ii) Consent to Operate certificate issued by State Pollution Control Board for the Specified End

Use Plant. In such a case, the project cost and expenditure certificates are not required to be submitted.

Following to be included:

It is clarified that in case, Specified End Use Plant being an operational Captive Generating Plant under

meaning of Electricity Rule 2005, the bidder shall submit certificate from Chartered Accountant or any

other agency for compliance of Captive criteria under Electricity Rules, 2005. Modification suggested to

allow Bidder having Captive Power Plant under the meaning of the Electricity Rule, 2005 to participate

in the tender.

As per Section 4(3)(a) of the Act, Bidder should be a company engaged in specified end

use. Further, as per Clause 1.1.38 of the Tender Document, Bidder or JV Partners (in

case the Bidder is a JV Company) should be the owner of the Specified End Use Plant.

Certificate for project cost and expenditure shall be as per Clause 4.1.2(e) of the

Tender Document.


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29 Clause 4.1.2 (f) Additional conditions for Bidders with a coal linkage or Memorandum of

Understanding

It may be clarified as to how the linkage quantity is adjusted with mine capacity. How will tapering of

existing coal linkage take place, in case of Bidder securing a coal mine? What will be the basis of

proportionate reduction ?

How the linkage quantity shall be reduced if the grades are different for Block’s average grade and the

Linkage coal grades? In case of a bidder with multiple coal linkages, will the bidder be asked about the

linkage it wants to surrender? The Bidder may be allowed to keep linkages from nearby sources to

optimise transportation costs.

As per Rule 10(4)(d)(iv) of the Rules, the entitlement to receive coal pursuant to

existing coal linkage shall stand proportionately reduced on the basis of the

requirement of coal being met from the mine allocated to such company. The existing

coal linkage shall then be tapered off/ reduced as per extant policy/ procedure

specified by the Government.

30 Clause 5.1.5

The documents including this Tender Document and all attached documents, provided by the Nominated

Authority are and shall remain or become the properties of the Nominated Authority and are

transmitted to the Bidders solely for the purpose of preparation and the submission of a Bid in

accordance herewith. Bidders are required to treat all such information as strictly confidential and shall

not use it for any purpose other than for preparation and submission of their Bid.

Any related information shared with FI’s/Banks for project financing to be exempted.

As per Clause 5.1.5 of the Tender Document and Clause 19 of the CMDPA

31 Clause 5.6.3

The rejection of a bid under Clause 5.6.2 shall lead to the disqualification of the Bidder for participating

in any auction or allotment of the coal mine/ block conducted by the Nominated Authority or the

Ministry of Coal for a period of two year starting from the date of appropriation of the Bid Security or

any other earlier date specified by the Nominated Authority (“Disqualification”). Such Disqualification

would also extend to each of the JV Partners in case the Bidder is a joint venture Company. In such cases,

the Nominated Authority reserves the right to take any such measure as may be deemed fit in the sole

discretion of the Nominated Authority, including annulment of the tender process.

It is requested that JV partners should be excluded from such disqualification .

As per Clause 5.6.3 of the Tender Document


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32 Clause 5.7 Utilisation of Coal

Whether coal from the coal block won under Iron & Steel can be utilized in an Integrated Steel Plant for

ancillary units like SAF, PGP, Auxiliary units, etc?

Coal utilisation norms shall remain the same as prescribed for Sponge Iron Or for Steel (coking coal) but

the coal can be allowed to be used within the same EUP for other ancillary units like SAF, PGP, etc and

at such units of other EUPs under the same category of approved End Use belonging to same owner or

JV To provide more flexibility of utilization of coal

No. Utilisation of coal shall be strictly as per the provisions of the Tender Document

and the Clause 8 of the CMDPA.

33 Clause 5.7 Utilisation of Coal

In the event that a Successful Bidder is able to explore and discover subsequently that the coal reserves

have gone up, it should be allowed to utilize the additional coal in accordance with Rule 19 or 20.

Also, Bidder needs to be provided a choice for sale of additional coal rather than being enforced to sell

coal to CIL at concessional rates.

Utilisation of coal shall be strictly as per the provisions of the Tender Document and

the Clause 8 of the CMDPA.

34 Clause 5.7.1

“The Successful Bidder shall not be permitted to use the coal extracted from the Coal Mine for any

purposes other than utilisation in the Specified End Use Plant. Any middling or washery rejects

generated from the Coal Mine may be utilised in any captive power plant of the Successful Bidder.”

Annexure I of the Tender Document

“It is clarified that where captive power is utilised for the production of iron & steel as end-use including

production of upstream and downstream products, then total coal requirement for such captive power

plant can be considered for the purpose of determination of eligibility.”

As per Rule (3) of Electricity Rules, 2005, Power plant shall be qualified as ‘captive generating plant’ only

when:

(a) ≥ 26% of the ownership is held by the captive user, and

(b) ≥ 51% of the aggregate electricity generated in such plant, determined on an annual basis, is

consumed for the captive use.

Whether selling of extra Power be allowed from such CPP shown as an End Use Plant. This clarification is

crucial for calculation of eligibility criteria and for valuation of coal block.

No, such captive power plant shall not be considered as Specified End Use Plant. As

per Clause 1.1.38 of the Tender Document, Bidder or JV Partners (in case the Bidder is

a JV Company) should be the owner of the Specified End Use Plant.

Coal shall be utilised in accordance with Clause 8 of the CMDPA.

Sale of power shall be as per Applicable Law.


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35 Clause 5.7.2

Notwithstanding anything contained in this Tender Document, the Successful Bidder shall utilise a

minimum of 75% of the actual production (ROM basis) in the specified end use plants and is allowed to

sell up to 25% of the actual production (ROM basis) in open market. The successful bidder shall be

required to pay an additional premium of 15% of its final bid price on per tonne basis, for the actual

quantity of coal sold in open market. The additional premium will be over and above the final bid price.

Can the bidder utilise the coal which could not be utilised in its DRI unit, which is the Specified End Use

plant, in a separate plant in the same premises, which is a Ferro Alloy Unit without paying the additional

premium.

No. Utilisation of coal shall be strictly as per the provisions of Clause 8 of the CMDPA.

36 Clause No 5.7.3

Any washery rejects and middlings generated from the Coal Mine which cannot be utilized in the

manner specified herein above may be sold by the Successful Bidder, only with the prior approval of the

Coal Controller‘s Organization.

Role of MOC to get the sale permission of Middling & Rejects.

As per Clause 5.7.3 of the Tender Document, such sale shall be done with prior

approval of CCO, an attached office of MoC.

37 Clause 5.7.4

.....Utilisation of coal for any other Specified End Use Plant of the Successful Bidder or its subsidiary shall

also be permitted in accordance with Rule 20 of the Rules.

The coal mined can be transferred from the Successful Bidder to its subsidiary company. Can the vice

versa be allowed i.e. can it be transferred from any subsidiary company to its holding company?

No. Utilisation of coal shall be strictly as per the provisions of Clause 8 of the CMDPA.

38 Clause 5.7.4

Utilization of coal for any other Specified End Plant of the Successful Bidder or its subsidiary shall also be

permitted in accordance with Rule 20 of the Rules.

Flexibility in transfer of coal to group entities- With coal being an input process and linked to aluminum/

steel prices for bidders, maximum flexibility in mine operation is needed for successful operations of the

mine.

Currently, the transfer of coal to group entities requires central government approval under Rule 20 of

Rules which can lead to challenges in operation where one group company faces coal shortage while

other is in surplus.

Utilization of coal for any other Specified End Plant of the Successful Bidder or its subsidiary shall also be

permitted as a default and would be in accordance with Rule 20 of the Rules wherein the Central Govt

approval is provided through this Tender document.

Utilisation of coal in any other plant of the Successful Bidder as per Section 20(2) of

the Act shall be carried out after providing a written intimation to the Central

Government, in accordance with the Clause 8.4 of the CMDPA and Section 20(2) of the

Act.


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39 Clause 5.7.4

..........However, the middling or washery rejects generated from the Coal Mine should in no event,

exceed the normative limits. The normative limits for this purpose shall be decided as per the results of

the washability test conducted by National Accreditation Board for Testing and Calibration Laboratories

(NABL) certified laboratory. The Nominated Authority and/or Central Government shall reserve the right

to conduct a separate washability test for this purpose.........

Nominated Authority may clarify on the Normative limits based on the test results for the sake of clarity


40 Clause 5.7.5

Any coal which is extracted in excess of the requirement of the Successful Bidder in terms of this Tender

Document, i.e., if due to maintenance or shutdown or such other unavoidable reasons, beyond the

control of the Successful Bidder, during any part of the year, the Successful Bidder is not able to use a

minimum of 75% of actual production (ROM basis), in specified end use plant or own consumption, such

excess coal shall be required to be sold to CIL at the terms and conditions specified at Clause 5.7.7.

It is requested to allow the flexibility to utilise the excess production in our group companies / affiliates

instead of selling to Coal India.

This shall be as per Clause 5.7.5 of the Tender Document.

It may however be noted that Coal may be used in any other plant of the Successful

Bidder or its subsidiary company engaged in same specified end use in accordance

with Clause 8.4.1 of the CMDPA.

41 Clause 5.7.7(ix)

Price payable to Successful Bidder shall be limited to CIL notified price of equivalent GCV grade for Power

utilities(including IPP), Fertiliser & Defence Sector.

This auction is for Non Regulated Sector and consideration of price should be for this sector only Price

payable to Successful Bidder shall be limited to CIL notified price of equivalent GCV grade for NRS(non

regulated sector) i.e sectors other than Power Utilities (including IPPs) Fertilisers & Defence”

The blocks in this Tranche are for the non regulated sectors ie Iron & Steel,CPP & Cement sectors. The

sale price of CIL should also be linked to notified price for non regulated sectors i.e sectors other than

Power Utilities (including IPPs) Fertilisers & Defence and not with the notified price of Power utilities

(including IPPs), fertilizers & defence sector.

Such sale to CIL shall be at CIL Notified Price for Sectors other than Power Utilities

(including IPPs) Fertilisers & Defence” less 15 percent of such CIL Notified Price plus

applicable tax.

42 Clause 6.1.1 Bid Security

The auction process based on the past trends usually gets extended beyond the timelines. In this case,

the bank guarantee which was submitted during the bidding process would suffice or should it be

replaced with a new bank guarantee?

The Bid Security should remain valid till the issuance of Vesting Order and the validity

of Bid Security may be extended in accordance with Clause 6.1.1 of the Tender

Document.


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43 Clause 6.1.6

The Bid Security shall be forfeited as damages without prejudice to any other right or remedy that may

be available to the Nominated Authority under the Tender Document and/ or under the Agreement, or

otherwise, under, inter-alia, the following conditions:

......

(e) In the case of Qualified Bidder(s) who has submitted the highest Initial Price Offer i.e. the Applicable

Floor Price, if the auction process is annulled due to non-submission of at least 1 (one) Final Price Offer

on the electronic auction platform.

Why is this provision applicable to the Bidder submitting the highest IPO?

As per Clause 6.1.6 of the Tender Document

44 Clause 6: Bid Security

Bid security should be reduced.

Bid Security should be limited to 0.5% of the intrinsic value of the asset

As per Clause 6 of the Tender Document.

45 Clause 7.1.1 Amount of Performance Security

1. In case of Schedule-II mine where the major reserves are depleted but the PRC is very high, the

formula for calculating Performance Security, gives an exorbitant value of BG to be maintained. Such

mine shall be exhausted in next few years. A different formulae may be adopted for a lower BG value.

2. Amount of Performance Security is too high; should be reduced.

3. In calculation of Performance Security, shall only the Royalty be considered or Energy Cess, DMF,

NMET, etc, shall also be considered in various States like West Bengal, Jharkhand etc in which mines are

located, in accordance with the various Subsidiaries of CIL, such as ECL, CCL etc for calculating 1 (one)

year royalty to be computed on the basis of peak rated capacity of the Coal Mine as per

the approved Mine Plan?

As per Clause 7 of the Tender Document. However, DMF, NMET, cess etc shall not be

considered for the purpose of calculation of amount of royalty for estimating

Performance Security.

46 Clause 7.1.1 Amount of Performance Security

In case the capacity approved under the Environment Clearance is restricted to a number lower than

the capacity approved n the Mine Plan, it is not possible for the bidder to achieve such a PRC.

The amount of Performance Security may be linked to the minimum of approved EC or 90%(OC)/

80%(UG) of PRC

As per Clause 7 of the Tender Document


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47 Clause 7.1.2 Revision in Performance Security

For the purpose of escalation and revision in performance security, can we use the coal index rather

than the reference index which is currently being used?

No. As per Clause 7.1.2 of the Tender Document.

48 Clause 9.1 Revision in Mine Plan upon allocation and Flexibility in Production

Shall the same mine plan of prior allottee be transferred?

The Vesting Order transferring and vesting upon the Successful Bidder all the rights,

title and interest of the prior allottee, in the Schedule I coal mine, shall be issued as

per Section 8(4) of the Act. In case the Mine Plan prepared by the prior allottee was

approved by the Central Government, such approved Mine Plan shall be transferred to

the Successful Bidder along with the Vesting Order. However, any revisions in the

approved Mine Plan or in case the Mine Plan is not approved, the Successful Bidder

will have to seek approval of the competent authority in accordance with Applicable

Law.

49 Clause 9.1 Revision in Mine Plan upon allocation and Flexibility in Production

In case a project proponent, being a Successful Bidder, would like to have revision in Mining Plan

(Change in method/change in technology) on pretext of conservation or safety, will it be allowed extra

time for making the mine operational

No. Efficiency Parameters shall be as per Clause 10 of the CMDPA.

50 Clause 9.2 Flexibility in Production

Flexibility in production allows for 80% of scheduled production in a year for open cast mines and 70%

in underground mines subject to the condition that successful Bidder shall not produce not less than

90% and 80% of scheduled production respectively in any five year period.

However, the Bidder would need additional flexibility in managing resource allocation internally and to

cater to market fluctuations. Hence, additional flexibility may kindly be provided.

As per Clause 9.2 of the Tender Document

51 Clause 10.1 Annexure - I: Information for Computing Eligibility on the basis of Coal Requirement

Consumption norms for each sub sector should be provided including the same for DRI based on Coal

Gasification process. CIMFR or any other competent scientific organization must be approached to

provide Consumption Norms for Sponge Iron manufacturing using Coal Gasification.

The consumption norms are required to assess the eligibility. As ministry of coal and CIL have already

approved granting of coal linkage for sponge iron plants based on Coal gasification (syn-gas). Therefore,

Norms meant for sponge iron should cover both based on coal gasification process and based on direct

coal feed basis separately.


52 Clause 10.1 Annexure - I: Information for Computing Eligibility on the basis of Coal Requirement

Please provide Coal Consumption Norms for CPP & Cement for all blocks

Coal Consumption norms as applicable for each Coal Mine has been provided in Clause

10.1 Annexure 1 of the mine-specific Tender Document.


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53 Clause 10.2 Annexure - II: Technical Details with respect to electronic auction

The Bidder has to apply for a coal mine having both coking as well as a non-coking coal reserves. For this

mine, there are two EUPs corresponding to two category of coal reserves and the prospective Bidders

want to put both the EUPs in its technical bid for the mine. How to put 2 EUPs while submitting the bid?

In case of Integrated Steel Plant having both Sponge Iron (using non-coking coal) & Blast Furnace (using

coking coal), the PAN & TAN are same. How the EUPs using different type of coals with same PAN & TAN

can participate for two separate mine blocks of coking & non-coking mine.

As per the system two EUPs may be selected for bidding against a Coal Mine. The

bidders' Guide may be referred. One EUP can be used for participating in different

Coal Mine Blocks


Suppose that we have submitted a bid, it will take atleast 2 minutes currently to be able to see it on the

portal and if in the meanwhile another bidder puts a bid, it will take another 2 mins to reflect it in the

portal and this way out of the last 8 mins available before closing of the bid, we have lost out on approx.

4 mins. Can the time to reflect be reduced to somewhere around 10-20 sec?

Bidder may manually refresh the page any numbers of times to see the latest bid,

without waiting for auto-refresh by system.


Opening of Initial Price Offer

Will the bidders other than Qualified bidders, be never intimated whether they were Technically

qualified or otherwise?

As per Clause 10.2 Annexure II - Clause 3.a.(iii)(b), "Only the Qualified Bidders shall be

intimated about their qualification for participation in electronic auction through

notification on MSTC website within their secured login as well as a system generated

email. ....."

[A system generated email from MSTC platform may be sent to Technically Qualified

Bidders stating they are Technically Qualified Bidders]

Post the completion of the auction process, a suitable communication shall be sent to

all bidders.


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56 Clause 10.5 Annexure V – Power of Attorney for Signing the Bid

Notes:

• The mode of execution of the power of attorney should be in accordance with the procedure,if any, laid

down by the Applicable Law and the charter documents of the executant(s) and when it is so required,

the same should be under common seal affixed in accordance with the required procedure.

• Wherever required, the Bidder should submit for verification the extract of the charter documents and

documents such as a board or shareholders resolution authorizing the execution of this power of

attorney.

• For a power of attorney executed and issued overseas, the document will also have to be legalised by

the Indian Embassy and appropriately notarised in the relevant jurisdiction. However, the power of

attorney provided by Bidders from countries that have signed the Hague Legislation Convention, 1961

are not required to be legalised by the Indian Embassy if it carries a conforming appostille certificate.

PSU's may be given relaxation from affixing common seal on power of Attorney for sigining the Bid.


57 Clause 10.5 Annexure-V (Power of Attorney) & Clause 10.6 Annexure-VI (Format of Affidavit)

There can be cases where the Power of Attorney is executed at Company’s Headquarter which may be

in a particular State and EUP and/or the corresponding Authorised Signatory may be resident of another

State where affidavit is executed. Is it acceptable to submit the Power of Attorney which is executed on

stamp paper of one State and the Affidavit being executed on stamp paper of another Sate?

Yes.

58 Clause 10.9 Annexure-IX Coal Mine Production & Development Agreement

Agreement is missing in the Tender Document

Standard Coal Mine Development & Production Agreement has been uploaded

separately on MSTC Platform and may be accessed at the following link:

https://www.mstcecommerce.com/auctionhome/Layouts/draftcmdpaagreement.html


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59 Clause 8.5 of CMDPA

Due to maintenance or shutdown or such other unavoidable reasons, beyond the control of allocattee,

during any part of the year, the allocattee is not able to use a minimum of 75% of actual production

(ROM basis), in specified end use plant or own consumption, such excess coal shall be required to be

sold to CIL at 15% less of CIL Notified Price for Power Utilities (including IPPs), Fertilizer & Defence

Sector‘; and Final Price Offer, Royalty, cess, Taxes if any shall also be paid monthly basis by the

allocattee.

Clarification is required that, why Allocattee will pay such Final Price Offer, Royalty, cess, Taxes etc.,

whereas selling to CIL at 15% less of CIL Notified Price (which is base price). As usual, these amounts

should be collected from the buyers of CIL.

As per Clause 8.5 of the CMDPA

60 Land transfer to successful bidder

As per Vesting Order, land purchased by prior allottee is vested to the successful bidder. As such it

should be seamlessly transferred to the successful bidder without any further process. It is, therefore,

requested to streamline the process with concerned state governments.

Transfer of land shall be in accordance with Applicable Law.

61 Coal Block Milestone Schedule

Bidders should not be held responsible for the delays in statutory and administrative approvals for the

reasons beyond its control. Bidders should get the benefit of extended period for Payment or other

obligation for such period of delay

As per Clause 10.1 of the CMDPA, "In bona fide cases of delays not attributable to the

Successful Bidder and based on the recommendation of the Scrutiny Committee, a

grace period of maximum 30% for each Main Activity/ milestone may be allowed

subject to the condition that overall grace period shall not exceed 15% of the time

granted for the last milestone of development (i.e. MS-7)."

62 Exit Provision

Currently the bid document is silent on any exit clauses for the Bidders. With multi decade leases, it is

imperative that exit clauses with clear liability for new bidders/ process for asset transfer be defined

Change in Control and Transfer shall be as per Clause 13 of the CMDPA and Applicable

Law.

63 Transaction Fee & Transaction Fee Security

Is there a transaction fee payable by the Bidders for the conduct of the auction process? The same may

be expressly clarified.

In the Corrigendum No 1 issued on 20th Aug 2019 pertaining to Annexure -II "Technical Details with

respect to electronic auction", there was a mention of Annexure IX Format for Transaction Fee Security

at a particular place; whereas, Annexure IX is Coal Mine Development and Production Agreement.

Kindly clarify.

There shall be no Transaction Fee or Transaction Fee Security for Tranche 8, 9, 10 of

coal mines auction.

Clause 3(a)(ii)(a) of Annexure II of the Tender Document shall be read as:"Bid Security

in substantially the same format as provided in Annexure VIII;"


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64 Mine Summary

In the current 8th, 9th & 10th Tranche Auctions, the information provided in respective mine summary

is not comprehensive.

Mine Summaries are provided as preliminary information about the coal mine to

prospective Bidders. Complete Mine Dossier and Mine Specific Tender Documents can

be accessed after payment of Tender Fee of Rs 5 Lakh.

65 General Query

Coal Bearing Area Act should be allowed to be used for acquisition of land by private sector for the

auctioned coal blocks

Coal Bearing Area Act is applicable for Government Companies only. Land acquisition

shall be carried out as per Applicable Law.

66 General Query

For transfer of land and mining infrastructure, several taxes/ duties/ charges such as registration fees,

stamp duty etc. would have to be paid out. It may be clarified that as to who would have to bear this

cost.

Considering that this may be a sizeable amount, these taxes/ duties/ charges for transfer of land

including registration fees, stamp duty, etc. should be waived off by the Central Government.

Such costs shall be as per Applicable Law and shall be borne by Succesful Bidder.

67 General Query

The Nominated Authority shall clarify the mechanism for transfer of mining lease. The detail process

should be mentioned upfront to have clarity that whether the Successful Bidder has to apply for the

fresh mining lease or it will be transferred to the Successful Bidder automatically.

As per Section 8(4)(b) of the act.

68 General Query

As per the mine dossier for assets, the Environment clearance as well as all Stage I and Stage II forest

clearances are in the name of mine which is specified to be owned by the previous allottee. Kindly

clarify the mechanism for transfer of these clearances when this asset is awarded to the Successful

bidder.

Nominated Authority through appropriate amendment in the clearance shall provide a revised EC and

FC along the lines of the previous clearances to the successful bidder before the signing of Coal Mine

Development and Production Agreement.

As per Applicable Law.

69 How Ministry of Coal will help in land acquisition in the State of Jharkhand as there is a separate act i.e.

CNT act applicable for land acquisition in the State?

Land acquisition shall be in accordance with Applicable Law.

Please refer to Section 49 of the Chota Nagpur Tenancy Act, 1908 (as may be

amended) which provides procedures and conditions for transfer of land.


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Note: The abovementioned responses to the Standard Tender Document of 8th Tranche of Auction dated August 03, 2019 shall apply mutatis mutandis to

mine-specific Tender Documents of Brahampuri, Bhaskarpara, Bundu, Chitarpur, Gare Palma IV-1, Gondulpara, Jaganathpur A, Jaganathpur B, Khappa &

Extn., Koser Dongergaon, Marki Mangli – IV and Sondiha Coal Mines (Tender Document dated August 03, 2019) & Marki Mangli-II Coal Mine (Tender

Document dated August 09, 2019)


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B. Mine Specific Queries and Responses to Coal Mines Being Auctioned in 8th Tranche


1 Bundu Coal Mine

Environment Clearance of Bundu coal block is required.

Environmental clearance of M/s Khappa coal Company Pvt Ltd was given instead of Bundu coal

block

Please refer the annexure submitted by the prior allottee wherein it has been stated

that formal letter for EC is pending for Stage-I Forest Clearance.

2 Bundu Coal Mine

Geological Report - Report on water analysis, air quality and noise level, soil quality are required.

Report on water analysis, air quality and noise level, soil quality are not given in GR. It is

mentioned in the GR, the report of Magadh coal block may be used for Bundu coal block. Report

of Magadh coal block make available to us

For desired information, please refer Chapter 13 of the Mining Plan submitted by the

prior allottee.

3 Bundu Coal Mine

With 1:5 cut off ratio, reserve is 7.66MT only but in the mine summary it was mentioned 32 MT.

please clarify. Reserve mismatch.

Information regarding extractable reserve, as shown in the mine summary, has been

taken from the Mining Plan. May please refer the Mining Plan for clarification.

4 Bundu Coal Mine

In GR, chapter-VII it is mentioned that in Bundu, neither potential for open cast nor underground

mining. Please clarify.

In GR of Bundu block , it was not recommended for open cast and underground mining.

Prior allottee had prepared the Mining Plan for opencast mining, which was approved

by MoC.

May please refer the Mining Plan.


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5 Chitarpur Coal Mine

Clause 3.3.2(g)(ii) of Tender Document - Cost of Infrastructure

The security at the block, post de-allocation was scant and the assets were lately acquired by an

“Asset Reconstruction Company”. During this intervening period, massive theft of items took place

and presently there is not much infrastructure left. The depreciated value simply based on paper

document would be totally misleading. It is suggested that the facility is visited by a State

appointed valuer and present value is calculated considering the date of purchase and installation

of existing items.


on the available information and the assessment made by the competent authority and

is uploaded as a part of the Tender Document.

6 Chitarpur Coal Block

Clause 3.3.2(g)(ii) of Tender Document. CMPDI & other Govt. Agencies in deriving detailed

geological boundary co-ordinates.

The mine dossier contain block boundary of Chitarpur Block superimposed on Toposheet with

Latitude & Longitude of 39 points on the block boundary. This boundary has undergone a change,

in the light of MoC’s letter no. 13016/1/2005-CA-I dt. 19.07.2006 stipulating that “small patch

adjacent to the block should be annexed to the main block”. This area measuring 29.50 hect. thus

included in lease application and an area of 27.86 hect. was excluded being non coal bearing. The

Mining Plan & Environmental Clearance approval have been issued considering this block

boundary and not the original block boundary given in Geological Report.

Any variation in block co-ordinate due to inclusion of 29.50 Hectares additional land area is certain

to rejection of the lease application at the first instance. Our sticking to the co-ordinate provided

in Mine Dossier given by MoC / CMPDI will call for starting the process of clearances with a clean

slate i.e. to prepare Mining Plan a fresh, seek Environment & Forest Clearance a fresh. It is

suggested the Block co-ordinates considering the boundary in Mining Plan approved by Ministry of

Coal is provided.

As per the Section 3(p) and Section 8 (4) of the Act.

The Vesting Order transferring and vesting upon the Successful Bidder all the rights,

title and interest of the prior allottee, in the Schedule I coal mine, shall be issued as per

Section 8(4) of the Act. In case the Mine Plan prepared by the prior allottee was

approved by the Central Government, such approved Mine Plan shall be transferred to

the Successful Bidder along with the Vesting Order.


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7 Marki Mangli II & Marki Mangli IV Coal Mines

Environment Clearance

Clause 3.3.2.g (ii)

M/s Topworth, the Prior Allottee of Marki Mangli II, Marki Mangli III & Marki Mangli IV, had

obtained a composite EC for the all three blocks. Currently only Marki Mangli II and Marki Mangli

IV are in auction in 8th Tranche.

Please clarify whether the same composite EC will be applicable to Marki Mangli II and Marki

Mangli IV or Successful Bidder will have to obtain fresh EC separately. If EC has to be obtained

again separately, then whether the cost of earlier composite EC shall be charged in the Fixed

Amount to the Successful Bidder

Environment Clearance shall be obtained as per Applicable Law.

As per current details available, cost of consents is nil for Marki Mangli-II and Marki

Mangli - IV coal mines. As per the Clause No. 3.3.2 (g) (ii) of the Tender Document, the

Fixed Amount is based on the available information and the assessment made by the

competent authority and is uploaded as a part of the Tender Document. Any upward

revision in the Fixed Amount on a subsequent date by the Government or the

Nominated Authority consequent upon any process or on the orders of any competent

court of law, shall also be payable by the Successful Bidder.