New Delhi, September 17: The Ministry of Coal on Thursday launched the 16th round of commercial coal mine auctions, offering 25 blocks across nine coal-bearing states, while also executing development and production agreements for six mines auctioned in earlier rounds.
Of the 25 blocks offered in the latest round, 21 are fully explored and four are partially explored. The mines are located across Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana and West Bengal.
Six of the blocks are being offered under the Coal Mines (Special Provisions) Act, while the remaining 19 are being offered under the Mines and Minerals (Development and Regulation) Act.
The commercial mining framework allows participation without end-use restrictions, permits 100 per cent foreign direct investment through the automatic route and provides for low upfront payments that can be adjusted against future revenue share.
Minister of State for Coal and Mines Satish Chandra Dubey launched the auction round in New Delhi. At the event, Dubey and Coal Secretary Vikram Dev Dutt also handed over Coal Mine Development and Production Agreements to successful bidders for six coal mines auctioned in earlier rounds.
The agreements were executed for Tara (Revised), Margo West, Margo East, Mandla South, Dongeri Tal-II and Dip Side of PKoC.
Successful bidders for the six mines include CG Syn-Gas & Chemicals Ltd, Jharkhand Exploration & Mining Corporation Limited, Qube Commercial Pvt Ltd, Gallant Ispat Ltd and The Singareni Collieries Limited.
Together, the six mines have geological reserves of approximately 1,504 million tonnes and a combined Peak Rated Capacity of 11.62 million tonnes per annum.
Once operational, the mines are expected to generate annual revenue of around ₹1,984 crore, attract nearly ₹1,743 crore in capital investment and create approximately 15,700 employment opportunities, according to the Ministry of Coal.
The latest launch marks the 16th round of commercial coal mine auctions since commercial coal mining was opened in India in 2020.
A total of 147 coal mines have been auctioned so far. According to the ministry, these mines are expected to generate annual revenue of more than ₹47,500 crore and attract capital investment of over ₹55,000 crore.
Dubey said coal meets around 55 per cent of India’s primary energy requirement and accounts for more than 70 per cent of electricity generation. He also called for greater participation in commercial coal mine auctions, wider adoption of technology and higher domestic production to reduce dependence on coal imports.
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