Centre Completes Auction Of 9 Coal Mines, To Yield Rs 1,446 Crore Annual Revenue

New Delhi, Nov 27: The Ministry of Coal announced Wednesday that it has successfully auctioned 9 mines as part of the 10th round of commercial coal mine auctions.

These mines are expected to generate an annual revenue of around Rs 1,446 crore (excluding partially explored mines), likely to attract a capital investment of around Rs 2,115 crore, and create 19,063 employment opportunities, the ministry said.

The nine mines hold a combined geological reserve of approximately 3,998.73 million tonnes. The cumulative Peak Rated Capacity (PRC) of these mines stands at 14.10 MTPA, excluding partially explored coal mines, according to the Ministry statement.

While three of these coal mines are in Jharkhand, there are two each in Odisha, Chhatisgarh, and Madhya Pradesh.

The Ministry of Coal launched the 10th round of coal mine auctions for commercial mining on June 21, 2024. In the forward auctions, a total of nine coal mines were successfully auctioned, comprising three fully explored mines and six partially explored coal mines, the statement said.

The auctions witnessed intense competition, achieving an average revenue share of 17.44 per cent. This reflects the sustained interest of industries in the coal sector and the Ministry's efforts to provide a stable and transparent policy framework, the statement added.

Since the inception of commercial coal mining in 2020, a total of 113 coal mines have been auctioned successfully, with a production capacity of 257.60 million tonnes per year. Upon operationalization, these mines will immensely contribute to enhancing domestic coal production and in making the country self-reliant in the coal sector.

Collectively, these mines are expected to generate annual revenue of Rs 35,437 crores, capital investment of Rs 38,641 crore and provide employment for 3,48,268 people in coal-bearing regions, the statement said.

"These strategic initiatives of the Ministry of Coal reaffirm the Ministry’s dedication to transforming the coal sector into a key driver of economic growth. These initiatives not only address the nation’s energy demands but also foster economic stability and create employment opportunities, contributing to the vision of an 'Atmanirbhar Bharat'," the statement added.

(IANS)