Centre auctions 6 coal blocks; mines to generate nearly ₹2,000 cr annually

Six coal blocks auctioned under commercial mining rounds are expected to generate ₹1,983 crore annual revenue, attract investment and create over 15,000 jobs

The Coal ministry on Tuesday said it has successfully auctioned six coal blocks under the 15th round and the second attempt of the 13th round of commercial coal mine auctions, with the mines together holding geological reserves of about 1,500 million tonnes (mt) and expected to generate nearly ₹2,000 crore in annual revenue once operational. 

The auctions, launched on April 17 this year, concluded through forward bidding held on August 3 and 4. Of the six blocks awarded, four are fully explored while two are partially explored. Collectively, the mines have geological reserves of around 1,503.93 mt and a cumulative peak rated production capacity of 11.62 million tonnes per annum. 

 

According to the ministry, the newly auctioned blocks are expected to generate annual revenue of about ₹1,983 crore for coal-bearing states, attract capital investment of nearly ₹1,743 crore, and create around 15,710 employment opportunities. 

 

Among the successful bidders, The Singareni Collieries Company Limited secured the Dip Side Extension of PKOC block in Telangana, while Gallantt Ispat Limited won the Dongeri Tal-II block in Madhya Pradesh. Jharkhand Exploration and Mining Corporation Limited emerged as the successful bidder for both the Margo West and Margo East coal blocks in Jharkhand, while CG Syn-Gas and Chemicals Limited won the Tara (Revised) block in Chhattisgarh. Qube Commercial Private Limited secured the Mandla South block in Madhya Pradesh. 

 

The Tara (Revised) coal block in Chhattisgarh attracted the highest  bid premium of 37.5 per cent, significantly higher than the premiums received for the other five mines. 

 

The latest auction takes the government's commercial coal mining programme further, with the ministry stating that 147 coal blocks have now been successfully auctioned since the launch of commercial coal mining in 2020. These mines together have an annual production capacity of 377.974 million tonnes and are projected to generate annual revenue of ₹48,215 crore, mobilise investments worth ₹54,315 crore, and create nearly 4.9 lakh jobs after becoming operational.