New Delhi, Dec 25 (IANS): A day after the cabinet approved an ordinance for the allocation of coal blocks, the government Thursday formally launched the portal for e-auction of 24 coal mines which will be held in February next year.

"With this, the registration process has been started and interested bidders with end use plants could visit MSTC website for the purpose. The registration process will be as per KYC norms and will be available on MSTC website," an official statement quoted Power, Coal and New and Renewable Energy Minister Piyush Goyal as saying.

The entire auction process will be transparent, efficient and conducted online only, he said.

"However, two documents of the bank guarantee comprising the bid security and an undertaking stating that all information submitted is true and correct shall be received in hard copy," Goyal said.

The auction process will comprise techno-commercial bid for qualification and financial bid (e-auction) for selection of successful applicant.

Only 50 percent of the qualified bidders from technical stage (subject to a minimum of five bidders) will be allowed to participate in the e-auction process, the statement said.

"E-auction of coal mines for qualified bidders will be held from Feb 14, 2015 to Feb 22, 2015. The entire mine allocation process for Schedule II coal mines will be completed by March 23, 2015 with the signing of Coal Mine Development and Production Agreement and the Vesting Order," the minister said.

The second phase of auction for 32 Schedule III coal mines will commence soon, he added.

"Mines set aside for iron and steel, cement and CPPs will be auctioned through 'Ascending Forward Auction', where qualified bidders will quote incremental bids above the pre-determined floor price," the statement said.

Mines to be allocated for power sector will be auctioned through "Descending Reverse Auction" to minimise impact on power tariffs of end use plants. Last date for receiving technical bids will be Jan 31, 2015 and list of qualified bidders will be placed on MSTC website on Feb 12, 2015, it added.