Government Finalizes Auction of 9 Coal Mines, Projected to Generate ₹1,446 Crore Annually

The Ministry of Coal has successfully auctioned 9 mines in the 10th round of commercial coal mine auctions, it said on Wednesday.

These mines are likely to generate around Rs 1,446 crore in annual revenue (excluding partially explored mines), and also likely to attract around Rs 2,115 crore in capital investment, besides creating 19,063 employment opportunities, according to the ministry.

There is an aggregate geological reserve of approximately 3,998.73 million tonnes in the nine mines. The total PRC is about 14.10 MTPA, minus partly explored coal mines. Of course, this according to a statement from the Ministry.

Three of these mines lie in Jharkhand; two in Odisha and Chhattisgarh and two in Madhya Pradesh.

The Ministry of Coal launched the 10th round of coal mine auctions for commercial mining on June 21, 2024. A total of nine coal mines were successfully auctioned in the forward auctions, which include three fully explored mines and six partially explored coal mines, according to the statement.

The auctions were highly competitive and achieved an average revenue share of 17.44 percent, reflecting sustained interest in the coal sector by industries and efforts by the Ministry to provide a stable and transparent policy framework, it said.

Since the beginning of commercial coal mining in 2020, a total of 113 coal mines have been auctioned successfully with the production capacity of 257.60 million tonnes per year. Once these mines get operationalized, they would contribute immensely to enhancing domestic coal production and making the country self-reliant in the coal sector.

Collectively, these mines are expected to generate annual revenue of Rs 35,437 crores, attract capital investment of Rs 38,641 crore, and provide employment for 348,268 people in coal-bearing regions, the statement said.

These strategic initiatives of the Ministry of Coal reaffirm the Ministry's commitment to transform the coal sector into a significant growth driver for the economy. These initiatives not only fulfill the energy needs of the nation but also lead to economic stability and job opportunities, contributing to the vision of an 'Atmanirbhar Bharat', as added in the statement.