Government Concludes Auction of Two Additional Coal Mines
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Synopsis
The Ministry of Coal has signed two agreements for the coal mines Marwatola-II and Namchik West. This is part of their goal to boost self-sufficiency in coal production, with significant expected revenue and job creation.
Key Takeaways
- Ministry of Coal signs new agreements.
- Coal mines: Marwatola-II and Namchik West.
- Estimated annual revenue: Rs 106.14 crore.
- Investment required: Rs 55 crore.
- Job creation: 460 opportunities.
New Delhi, April 8 (NationPress) The Ministry of Coal has formalized two new coal mine development and production agreements with the successful bidders for the coal mines - Marwatola-II and Namchik West - as part of the 11th round of commercial auctions, as stated in an official announcement made on Tuesday.
These agreements signify a further commitment towards the nation’s objective of achieving self-reliance in coal production, the announcement added.
Singhal Business Private Limited has acquired the Marwatola-II block, while PRA Nuravi Coal Mining Private Limited has won the bidding for Namchik West.
Of the two coal mines, one is fully explored and the other is partially explored. Together, they are expected to generate an estimated annual revenue of Rs 106.14 crore, based on a total Peak Rated Capacity (PRC) of approximately 0.34 million tonnes per annum (MTPA). To bring these mines into operation, a capital investment of about Rs 55 crore will be necessary, according to the announcement.
In terms of job creation, the two blocks are anticipated to generate around 460 direct and indirect job opportunities, aiding the socio-economic growth of their respective regions, the statement indicated.
Previously, on March 24, the Ministry of Coal revealed the successful auction of 12 coal mines, including eight fully explored and four partially explored mines across five states.
These mines are projected to generate an annual revenue of Rs 3,330 crore (excluding the partially explored mines) and attract a capital investment of around Rs 2,319 crore. Furthermore, these mines are expected to create 20,902 employment opportunities, significantly supporting economic development in coal-rich regions, as per the announcement.
The mines are situated in Maharashtra, Chhattisgarh, Jharkhand, Arunachal Pradesh, and Odisha.
With these new agreements, the Ministry of Coal has now finalized contracts for a total of 120 coal mines auctioned under the commercial coal mining framework. Together, these mines represent a cumulative PRC of 265.64 MTPA, with an estimated annual revenue generation of Rs 37,300 crore and a projected investment of Rs 39,900 crore. Moreover, they are expected to generate employment for nearly 3,59,200 individuals nationwide.
