The successful completion of these auctions reinforces the Government's commitment to fostering growth and sustainability in the coal mining industry, driving India's economic progress and ensuring energy security.
Ministry of Coal has completed the auction of coal mines. (Credit: Анатолий Стафичук from Pixabay)
The Ministry of Coal has successfully completed the auction of coal mines for Commercial Mining under 7th round and second attempt of 6th round.
After assessment of bids, the forward e-auctions for six mines had commenced from August 1, 2023 culminating in the successful auction of all six mines on 3rd August, 2023.
The details of the coal mines auctioned are as under: –
Among the mines auctioned, two coal mines are fully explored while four are partially explored.
The total geological reserve for these six coal mines is at 2,105.74 Million Tonnes.
The cumulative Peak Rated Capacity (PRC) for these coal mines is 7 MTPA, (excluding the partially explored coal mines.)
The average revenue share has shown an upward trend, increasing from 22.12% in the previous tranche to 23.71%.This higher revenue share indicates a strong and continued interest from industry players and investors in the commercial coal mining sector and stable future of coal mining in India. This also signifies the success of the reforms introduced by the Government in the coal sector through the introduction of commercial coal mining.
Coal production from these mines will help to reduce the demand for imported thermal coal and decreasing reliance on public sector coal mining companies. The commercial coal mine auctions will bring about positive changes for society, by creating job opportunities and infrastructure development in the coal-bearing regions. Moreover, they are expected to make a substantial contribution to the states’ revenues, generating an estimated annual revenue of approximately ~787 crores (excluding Partially Explored coal mines) calculated at the peak rated capacity (PRC) of these coal mines. These auctions are also anticipated to attract a capital investment of approximately Rs 1,050 crores, leading to creation of around 9,464 employment opportunities.
With the successful auctioning of these six coal mines, the total number of coal mines auctioned under commercial auctions now stands at 92. These mines are projected to generate an annual revenue of approximately ~34,185 crores (excluding partially explored coal mines) calculated at the current PRC of coal mines. The operationalization of these coal mines is expected to lead to a capital investment of around Rs 34,486 crores and generate employment opportunities for approximately 3,10,818 people.
The Ministry of Coal acknowledges the remarkable progress made in the commercial coal mining sector. The successful completion of these auctions reinforces the Government’s commitment to fostering growth and sustainability in the coal mining industry, driving India’s economic progress and ensuring energy security.
Source: Company Press Release