The Ministry of Coal has successfully completed the auction of coal mines under the 7th round and the second attempt of the 6th round. The forward e-auctions for six mines took place from August 1, 2023, culminating in the successful auction of all six mines on August 3, 2023.
Here are the key details:
- Mines Auctioned: Two mines are fully explored, and four are partially explored.
- Total Geological Reserve: The total geological reserve for these six coal mines is 2,105.74 million tonnes.
- Cumulative Peak Rated Capacity (PRC): The PRC for these coal mines is seven million tonnes per annum, excluding the partially explored mines.
- Average Revenue Share: The average revenue share has increased from 22.12 percent in the previous tranche to 23.71 percent, indicating continued interest from industry players in commercial coal mining in India.
- Impact: Coal production from these mines is expected to reduce the demand for imported thermal coal and decrease reliance on public sector coal mining companies. The auctions are anticipated to create job opportunities, promote infrastructure development in coal-bearing regions, and contribute substantially to the revenues of the state.
The successful auctioning of these six coal mines raises the total number of coal mines auctioned under commercial auctions to 92. These mines are projected to generate annual revenue of approximately Rs 34,185 crores (excluding partially explored mines) and attract capital investment of around Rs 34,486 crores. Additionally, they are expected to create employment opportunities for around 3,10,818 people.
The successful completion of auctions reflects the government’s commitment to fostering growth and sustainability in the coal mining industry while ensuring energy security.
