Government to Auction 27 Coal Blocks for Commercial Mining

New Delhi, Dec 4 (NationPress) The Ministry of Coal will kick off the 11th round of Commercial Coal Mine auctions on Thursday (December 5), where 27 coal blocks will be made available in different states to stimulate regional economic development and create job opportunities, according to an official statement released on Wednesday.

Following the success of earlier auctions, the Ministry is committed to unlocking India's extensive coal reserves and improving energy security, the statement noted.

Union Minister of Coal and Mines G. Kishan Reddy will inaugurate the auctions in the national capital, accompanied by Minister of State for Coal and Mines Satish Chandra Dubey and Secretary of Coal Vikram Dev Dutt.

This auction will include 20 coal mines available for bidding, consisting of 10 fully explored and 10 partially explored blocks. In addition, 7 coal mines from the second attempt of Round 10 will also be offered, featuring 4 fully explored and 3 partially explored blocks.

All these mines consist of non-coking coal, addressing India's increasing energy needs, as stated by officials.

Moreover, during the event, the Ministry of Coal will formalize Coal Mine Development and Production Agreements and Coal Block Development and Production Agreements for nine coal mines.

These mines are expected to generate an annual revenue of around Rs 1,446 crores at peak-rated capacity and create approximately 19,063 job opportunities.

Additionally, Coal Block Development and Production Agreements will be distributed to the successful bidders of the 10th tranche, highlighting the government's commitment to boosting coal production and energy security, according to the statement.

The commercial coal mine auctions have introduced important reforms, including the removal of restrictions on the sale or utilization of coal.

Significantly, eligibility criteria have been abolished, thereby eliminating any technical or financial barriers to participation.

Furthermore, a strategic transition from the notified price to the National Coal Index guarantees transparency and fairness, paving the way for a market-driven pricing model.

The amendment of mineral laws has been crucial in opening up the coal sector, providing a fair playing field for both public and private entities and enabling auctions for various purposes, including personal consumption and sale.

To simplify and expedite mine operationalization, the Ministry has launched the Single Window Clearance System (SWCS) portal.

This platform facilitates a smooth process for obtaining necessary approvals, ensuring ease of business and enhancing coal production through a unified gateway.

These reforms emphasize the Ministry's commitment to establishing a resilient and forward-looking coal sector.

Comprehensive information regarding the mines, auction procedures, and timelines can be accessed on the MSTC auction platform. The auctions will be conducted through a transparent online system, utilizing the Percentage Revenue Share model, the statement added.