(1)In respect of coal blocks, for which the Central Government has specified auction under clause (b) of sub-rule (1) of rule 3, the Central Government shall prepare a document for the auction process, that is, the tender document.(2)Each tender document may include such information as the Central Government may consider expedient for the purposes of auction including,-(a)the block dossier containing particulars of the coal block;(b)purpose of allocation of the coal blocks including, but not limited to, own consumption or for sale;(c)the terms and conditions associated with the public auction, including the floor price in case of forward auction or the ceiling price in case of reverse auction, reserve price in case of reverse auction, eligibility conditions, the process of conduct of auction and other related information;(d)the request for proposal;(e)specimen of agreements proposed to be entered into with the successful bidder as specified in sub-rule (1) of rule 8.(3)The participants in the auction process shall be required to make payment of non-refundable fee of five lakh rupees for each coal block.(4)The Central Government shall issue a public notice for the auction in at least one Hindi and one English language national newspaper and such public notice shall specify the manner in which the tender document shall be obtained.(5)The Central Government shall comply with the following procedure while conducting auction, namely:-(a)Electronic auction. - The process of auction of coal blocks shall be conducted through electronic auction, in accordance with the Act, these rules, the tender document and orders issued by the Central Government, if any.(b)Auction process. - (A) The auction process shall be a two stage process comprising of-(i)technical bid; and(B)The technical bid shall be for the purpose of qualification and the financial bid shall be for the purpose of determination of the successful bidder.(C)The financial bid may be divided into such sub-stages or rounds as may be deemed expedient by the Central Government.(ii)financial bid.(c)Eligibility. - The Central Government shall specify the applicable eligibility conditions for participation in auction in the tender document and the same may include,-(i)technical and financial qualifications of the participants in the auction;(ii)compliance with the procedure specified for the auction process; and(iii)requirement to provide bid security in the form of bank guarantee.(d)The Central Government may constitute a committee consisting of members from the Ministry of Coal, other ministries or departments of Central Government and such technical experts from various fields as may be deemed expedient for making recommendations to the Central Government for the purposes of determining technical and financial eligibility of the bidders.(e)In case the coal block is specified for auction for the purpose of own consumption, then the capacity of the end use project for which a bidder is bidding shall be in such proportion to the capacity of coal block as may be specified.(f)The Central Government may also specify the maximum number of coal blocks or amount of coal reserves or both that may be allocated to a company or corporation or its subsidiary or parent company or associate companies or group companies or its affiliate.(6)Upon completion of the auction process, the preferred bidder shall be declared on the basis of the result of auction.(7)The Central Government may, after such scrutiny of the auction conducted as may be deemed expedient, declare the preferred bidder to be the successful bidder for the coal block or may cancel the auction process of the coal block.(8)In case the coal block is specified for the purpose of own consumption and a bidder having a coal linkage becomes the successful bidder, then the entitlement to receive coal pursuant to such coal linkage for the end use plant on the basis of which it became a successful bidder may be reduced on such basis as may be specified by the Central Government.
