Coal Ministry Successfully Completes 7th Tranche of Coal Block Auctions, Auctions Six Coal Mines from Four States
92 Coal Mines successfully auctioned so far under Commercial Auction
- Rs. 34,185 crore Annual Revenue, Rs. 34,486 crore Investment and approximately 3,10,818 Employment Opportunities expected
TFP Bureau New Delhi, August 4, 2023: The Ministry of Coal, in a significant development, has successfully concluded the 7th round and second attempt of the 6th round of commercial mining auctions. The forward e-auctions for six coal mines commenced on August 1, 2023, and concluded on August 3, 2023, with all six mines being successfully auctioned off.
On the official press release issued by Press Information bureau Delhi on August 4, 2023. The numbers and data presented are subject to the authenticity of the information provided by the government.
The auction process saw enthusiastic participation from industry players and investors, resulting in positive outcomes for the mining sector in India. Among the six mines auctioned, two are fully explored, while four are partially explored. The combined geological reserves of these mines amount to a massive 2,105.74 Million Tonnes.
A key highlight of the auctions was the rise in the average revenue share, which increased from 22.12% in the previous tranche to 23.71% in this round. This upward trend in revenue share reflects the continued interest and confidence of investors in the commercial coal mining sector, boding well for the future of coal mining in the country. It also attests to the success of the government’s coal sector reforms, particularly the introduction of commercial coal mining.
The successful auction of these six coal mines is expected to have significant positive implications for both the economy and society. With increased domestic coal production, there will be a reduction in the demand for imported thermal coal, thereby decreasing reliance on public sector coal mining companies.
Furthermore, the auction is set to create numerous employment opportunities and foster infrastructure development in the coal-bearing regions. The estimated annual revenue contribution from these mines, calculated at their peak rated capacity, is approximately ~787 crores (excluding partially explored mines). Additionally, an expected capital investment of around Rs. 1,050 crores will further boost economic growth and development.
The Ministry of Coal is elated with the successful auctioning of these six coal mines, as it brings the total number of coal mines auctioned under commercial auctions to an impressive 92. These auctions are projected to generate substantial annual revenue of approximately ~34,185 crores (excluding partially explored mines) at the current peak rated capacity. This influx of revenue is expected to lead to a capital investment of around Rs. 34,486 crores and create employment opportunities for an estimated 3,10,818 people across the country.
The positive outcome of these auctions reaffirms the government’s dedication to promoting growth and sustainability in the coal mining industry, contributing to India’s economic progress, and ensuring energy security.
As the commercial coal mining sector gains momentum, the nation looks forward to reaping the rewards of increased coal production, improved self-sufficiency, and the overall prosperity it brings. The successful completion of these auctions marks a milestone in India’s coal mining journey and sets the stage for a promising future in the sector.
