Section 5(5) in Coal Blocks Allocation Rules, 2017
(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.
