Coal ministry congregates top bankers before e-sale of coal mines

To maintain lenders in self-assurance prior to re-allowance of coal mines, the coal agency held a conference with key banks and financial organizations on Thursday.

The organization anticipates involving the lenders vigorously in the e-sale of coal mines. "Lenders are an significant connection in the public sale of coal mines. This conference is being held to describe the lenders of the public sale procedure and facilitate them comprehend the expected support forthcoming bidders might have need of," said one of the contributors in the assembly.

Approximately 20 nationwide, local and confidential banks, in conjunction with the Rural Electrification Corporation and Power Finance Corporation, were requested by the coal agency for an open conversation on the e-auction.

Charging the lenders in assurance is on the verge of profit for the bidders from the power subdivision the most. A good number of power generation stations are stumbling beneath fuel crunch and have evaded on their credits. Of the 136 Gw abandoned power production capability with an venture of Rs 6.23 lakh crore, to the extent that Rs 4.36 lakh crore is feared to adapt into non-executing benefits.

Coal-based ventures of 46,500 Mw experience from with time and cost overruns, damaging a dedicated venture of concerning Rs 3 lakh crore. The administration instigated the re-allocation procedure by beginning allowance of 36 coal mines to nationalized entities from January 23. Out of the 36 coal mines, one is for the steel subdivision and the rest for the power subdivision. The e-sale of 46 coal mines will begin from February 14. Out of these, 16 are for power subdivision and rests are for the iron & steel, and cement subdivisions, and captive power manufacturers.
 
To maintain lenders in self-assurance prior to re-allowance of coal mines, the coal agency held a conference with key banks and financial organizations on Thursday.

The organization anticipates involving the lenders vigorously in the e-sale of coal mines. "Lenders are an significant connection in the public sale of coal mines. This conference is being held to describe the lenders of the public sale procedure and facilitate them comprehend the expected support forthcoming bidders might have need of," said one of the contributors in the assembly.

Approximately 20 nationwide, local and confidential banks, in conjunction with the Rural Electrification Corporation and Power Finance Corporation, were requested by the coal agency for an open conversation on the e-auction.

Charging the lenders in assurance is on the verge of profit for the bidders from the power subdivision the most. A good number of power generation stations are stumbling beneath fuel crunch and have evaded on their credits. Of the 136 Gw abandoned power production capability with an venture of Rs 6.23 lakh crore, to the extent that Rs 4.36 lakh crore is feared to adapt into non-executing benefits.

Coal-based ventures of 46,500 Mw experience from with time and cost overruns, damaging a dedicated venture of concerning Rs 3 lakh crore. The administration instigated the re-allocation procedure by beginning allowance of 36 coal mines to nationalized entities from January 23. Out of the 36 coal mines, one is for the steel subdivision and the rest for the power subdivision. The e-sale of 46 coal mines will begin from February 14. Out of these, 16 are for power subdivision and rests are for the iron & steel, and cement subdivisions, and captive power manufacturers.
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To boost lender confidence ahead of coal mine re-allocation, the coal agency held a meeting with around 20 banks and financial institutions, including REC and PFC. The goal was to involve lenders in the e-auction process and ensure clarity for bidder support. This move is crucial for the power sector, which faces severe fuel shortages and credit defaults. Of 136 GW stalled power capacity, ₹4.36 lakh crore is at risk of becoming NPAs. Coal-based projects of 46,500 MW have cost overruns totaling ₹3 lakh crore. Re-allocation began with 36 mines to public entities, and e-auction of 46 mines (starting Feb 14) includes allocations for power, steel, cement, and captive power sectors.
 
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