Government Auctions 12 Coal Mines, Expected to Generate Rs 3,330 Crore Annually
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Synopsis
The Ministry of Coal has auctioned 12 coal mines, including eight fully explored and four partially explored, generating an estimated annual revenue of Rs 3,330 crore, alongside substantial capital investment and job creation.
Key Takeaways
- The auctioned mines are expected to generate Rs 3,330 crore annually.
- 20,902 jobs will be created in coal-bearing regions.
- Collectively, the mines hold geological reserves of 5,759.23 million tonnes.
- The average revenue share from auctions was 36.27%.
- The Ministry has auctioned 125 coal mines since 2020.
New Delhi, March 24 (NationPress) The Ministry of Coal has successfully auctioned a total of 12 coal mines, which include eight fully explored and four partially explored coal mines across five states, as stated in an official announcement on Monday.
The newly auctioned mines are anticipated to yield an annual revenue of Rs 3,330 crore (excluding the partially explored mines) and are expected to attract a capital investment of around Rs 2,319 crore. Furthermore, these mines are projected to create 20,902 employment opportunities, thereby significantly aiding economic development in coal-rich regions, according to the statement.
These mines are situated in Maharashtra, Chhattisgarh, Jharkhand, Arunachal Pradesh, and Odisha.
The twelve mines collectively contain a geological reserve of approximately 5,759.23 million tonnes, with a combined peak-rated capacity of 15.46 Million Tonnes Per Annum (MTPA), not including the partially explored mines. The auctions were highly competitive, achieving an average revenue share of 36.27 percent, underscoring the persistent interest of industries in India’s coal sector and the ministry’s dedication to offering a stable and transparent policy environment, the statement noted.
The Ministry of Coal initiated the 11th round of coal mine auctions for commercial mining on December 5, 2024, marking a crucial milestone in India’s path toward self-sufficiency in the coal sector. In these forward auctions, a total of twelve coal mines were successfully auctioned, the statement mentioned.
Since the launch of commercial coal mining in 2020, the Ministry of Coal has auctioned a total of 125 coal mines, with a combined production capacity of 273.06 Million Tonnes per year. Once operational, these mines will play a vital role in boosting domestic coal production and enhancing India's energy security. Collectively, these mines are expected to generate an annual revenue of Rs 38,767 crore, attract a capital investment of Rs 40,960 crore, and create employment for approximately 4,69,170 people.
Production from commercial coal mines has demonstrated a growth rate of over 78 percent, increasing from 12.55 MT in FY 23-24 to 22.35 MT in FY 24-25, the statement concluded.
