The coal ministry has received valid interest for only six coal mines out of the 27 which were offered for the iron & steel, cement, and captive power plant end-use. Auction of 21 coal mines has been cancelled by the ministry as it received less than three bids for them.

According to the norms of the coal auction under the Coal Mines Nationalisation Act, each mine requires minimum three bids for the government to hold auction.

Jamkhani coal mine, situated in the state of Odisha, has attracted maximum bids including from companies like Vedanta, JSW, Hindalco, JSPL, Rungta Mines and Natural Resources Energy Limited.

"The response to the coal auction has been subdued, mainly because of the market sentiment and also changes in policy," said a source from the coal ministry.

The technical bids will be examined starting October 17 and the auction will begin on October 24. The government has allowed 25 percent commercial sale of coal from the mines offered on auction.