Coal Ministry auctions three coal blocks in 13th commercial round

The Coal Ministry has auctioned three fully explored blocks with 3.3 billion tonnes of reserves and 49 mt annual capacity, attracting Rs 7,350 crore investment and boosting commercial mining momentum

The Ministry of Coal has auctioned three fully explored coal blocks in the 13th round of commercial coal mine auctions held between 20 November and 25 November, securing projects with combined geological reserves of 3,306.58 million tonnes.

 

The blocks carry a cumulative peak rated capacity (PRC) of 49 million tonnes per annum. PRC is the maximum output a coal mine is approved to produce. The three auctioned mines are expected to generate annual revenue of around Rs 4,620 crore, attract Rs 7,350 crore in investment and create 66,248 jobs, the ministry said in a statement.

 

The three non-coking coal blocks auctioned include Pirpainti Barahat and Dhulia located in Jharkhand and Mandakini-B situated in Odisha. Damodar Valley Corporation (DVC), a public sector undertaking under the power ministry, emerged as the preferred bidder for these blocks.

 

Which companies and blocks figured in the 13th commercial auction?

 

The 13th round of the commercial coal auction was launched on August 21. DVC had submitted a final offer of 5.50 per cent revenue share for the Pirpainti Barahat and Dhulia blocks and 12.75 per cent for the Mandakini-B block. The ministry said the Takua block, located in Odisha, received no bids in the final-offer stage.

 

How many coal mines have been auctioned since commercial mining began?

 

The government has auctioned 136 coal blocks since the launch of commercial coal mining in 2020, representing potential production capacity of 325 million tonnes per annum. Collectively, these blocks are expected to generate Rs 43,330 crore in annual revenue and mobilise Rs 48,756 crore in investment. These achievements, the ministry said, are part of the larger effort to transform the coal sector into a key driver of economic growth.