9
auctioned (MOC, 2023). These coal blocks have been auc-
tioned in 16 tranches of auctions, each tranche offering
different number of coal blocks, some of which remained
un-awarded due to lack of sufficient participation (less
than 3 bidders) (Nominated Authority, 2020). We have
used data only for coal blocks that were successfully auc-
tioned and for which vesting orders, a contract with the
Nominating Authority specifying terms and conditions of
mineral right award, were signed by the successful bidders.
In our study, we have used the data for the 127 coal
blocks auctioned. The sources of data have been Ministry
of Coal notifications of auctions, the coal block summaries
provided by the online platform of MSTC that has been
authorized by Nominated Authority to run auctions o their
behalf. Details of progress on the coal blocks offered have also
been gather from sources such as Ministry of Environment,
Forest and Climate Change (MOEFCC), Government of
India and Pollution Control Boards of States in which the
coal blocks are located. Data on the logistics infrastructure
and distances from the nearest railway siding is obtained
from mine summaries and tools available from Ministry of
Railways, Government of India.
Data for prices of various grades of coal are obtained
from the publications on the website of Coal India Limited
and from Center for Monitoring of Indian Economy
(CMIE). The reference prices from which the percent
revenue share offered in bidding is computed to money
value is from the coal block specific data published by the
Nominated Authority on MSTC website.
Following table, Table 1, summarizes the descriptive
statistics of coal blocks and their bidding outcomes:
In the initial round of coal block auctions, 6 coal blocks
were auction to captive consumers for power generation
on the basis of reverse bidding. In this scheme of auction,
Ministry of Coal assessed that power generation units that
bought their supplies from CIL could be awarded captive
coal blocks such that they could mine coal and use in their
approved power generation units and thus be able to sub-
stitute CIL’s supplies. The structure of auction was thus a
reverse bid from a cap of CIL price downwards, where the
bidder who promised to charge least from the consumer
Table 1. Descriptive Statistics of Coal blocks Auctioned – 2014–2023
Variable Unit Mean Standard Deviation
Bid Amount INR/tonne 1003.10 1712.09
Number of Bidders Number 4.16 2.62
Excess Bid INR/tonne –887.26 1651.49
Surface area Square kilometer 9.72 9.54
Distance from nearest Railway Siding Kilometers 21.66 18.82
Project Affected People Number 327.23 375.98
Proportion of Forest Land in Mining Lease Proportion 0.24 0.23
Stripping Ratio Cubic Meters/Tonne 10.00 6.99
GCV of coal Kilo Calorie per kilogram 5002.76 1085.75
Mine Capacity Million Tonnes per Annum 3.75 5.27
Geological Reserves Million Tonnes 210.04 302.26
Data from 127 coal blocks auctioned from 2014–2023
• INR is Indian Rupee – the currency of India
• Bid amount is the amount in Indian Rupees per tonne of production from coalmine
• Excess Bid is amount computed by subtracting CIL market price of coal of equivalent grade from Bid amount for coal blocks
• Surface area is the land that is proposed to be used for coalmining purposes as estimated by the technical arm of Ministry of
Coal, which includes coal bearing land, and may not include land for infrastructure facilities, beneficiation plants, land for
rehabilitation and resettlement, compensatory forestation, housing for workers of the mines and such others
• Distance from Railway Siding is the shortest distance to the nearest facility to load coal produced from mines to railway wagons
• Project Affected People is the official number of people who are likely to be displaced when the coal block project is implemented
• Proportion of Forest Land is the ratio of designated forest land to the total land area in coal block lease
• Stripping ratio is a geotechnical feature of coal blocks that takes into account the average amount of waste in cubic meters
required to be handled for every tonne of coal extraction for the life of coalmine
• GCV is the gross calorific value of average grade of coal available in a coalmine, based on which the reference prices are set by the
Ministry of Coal, which is used to benchmark the revenue shares offered by bidders in auction
• Mine capacity is the technical appraisal of the peak rated capacity of a coal block established by the technical arm of Ministry of
Coal
• Geological reserves is the quantum of coal available in coal blocks assessed by the technical arm of Ministry of Coal
auctioned (MOC, 2023). These coal blocks have been auc-
tioned in 16 tranches of auctions, each tranche offering
different number of coal blocks, some of which remained
un-awarded due to lack of sufficient participation (less
than 3 bidders) (Nominated Authority, 2020). We have
used data only for coal blocks that were successfully auc-
tioned and for which vesting orders, a contract with the
Nominating Authority specifying terms and conditions of
mineral right award, were signed by the successful bidders.
In our study, we have used the data for the 127 coal
blocks auctioned. The sources of data have been Ministry
of Coal notifications of auctions, the coal block summaries
provided by the online platform of MSTC that has been
authorized by Nominated Authority to run auctions o their
behalf. Details of progress on the coal blocks offered have also
been gather from sources such as Ministry of Environment,
Forest and Climate Change (MOEFCC), Government of
India and Pollution Control Boards of States in which the
coal blocks are located. Data on the logistics infrastructure
and distances from the nearest railway siding is obtained
from mine summaries and tools available from Ministry of
Railways, Government of India.
Data for prices of various grades of coal are obtained
from the publications on the website of Coal India Limited
and from Center for Monitoring of Indian Economy
(CMIE). The reference prices from which the percent
revenue share offered in bidding is computed to money
value is from the coal block specific data published by the
Nominated Authority on MSTC website.
Following table, Table 1, summarizes the descriptive
statistics of coal blocks and their bidding outcomes:
In the initial round of coal block auctions, 6 coal blocks
were auction to captive consumers for power generation
on the basis of reverse bidding. In this scheme of auction,
Ministry of Coal assessed that power generation units that
bought their supplies from CIL could be awarded captive
coal blocks such that they could mine coal and use in their
approved power generation units and thus be able to sub-
stitute CIL’s supplies. The structure of auction was thus a
reverse bid from a cap of CIL price downwards, where the
bidder who promised to charge least from the consumer
Table 1. Descriptive Statistics of Coal blocks Auctioned – 2014–2023
Variable Unit Mean Standard Deviation
Bid Amount INR/tonne 1003.10 1712.09
Number of Bidders Number 4.16 2.62
Excess Bid INR/tonne –887.26 1651.49
Surface area Square kilometer 9.72 9.54
Distance from nearest Railway Siding Kilometers 21.66 18.82
Project Affected People Number 327.23 375.98
Proportion of Forest Land in Mining Lease Proportion 0.24 0.23
Stripping Ratio Cubic Meters/Tonne 10.00 6.99
GCV of coal Kilo Calorie per kilogram 5002.76 1085.75
Mine Capacity Million Tonnes per Annum 3.75 5.27
Geological Reserves Million Tonnes 210.04 302.26
Data from 127 coal blocks auctioned from 2014–2023
• INR is Indian Rupee – the currency of India
• Bid amount is the amount in Indian Rupees per tonne of production from coalmine
• Excess Bid is amount computed by subtracting CIL market price of coal of equivalent grade from Bid amount for coal blocks
• Surface area is the land that is proposed to be used for coalmining purposes as estimated by the technical arm of Ministry of
Coal, which includes coal bearing land, and may not include land for infrastructure facilities, beneficiation plants, land for
rehabilitation and resettlement, compensatory forestation, housing for workers of the mines and such others
• Distance from Railway Siding is the shortest distance to the nearest facility to load coal produced from mines to railway wagons
• Project Affected People is the official number of people who are likely to be displaced when the coal block project is implemented
• Proportion of Forest Land is the ratio of designated forest land to the total land area in coal block lease
• Stripping ratio is a geotechnical feature of coal blocks that takes into account the average amount of waste in cubic meters
required to be handled for every tonne of coal extraction for the life of coalmine
• GCV is the gross calorific value of average grade of coal available in a coalmine, based on which the reference prices are set by the
Ministry of Coal, which is used to benchmark the revenue shares offered by bidders in auction
• Mine capacity is the technical appraisal of the peak rated capacity of a coal block established by the technical arm of Ministry of
Coal
• Geological reserves is the quantum of coal available in coal blocks assessed by the technical arm of Ministry of Coal