States must act against profiteering in retail coal market, says minister

Coal minister urges states to check retail profiteering amid rising prices during the West Asia crisis; Centre launches seventh tranche of critical mineral auctions

Coal and Mines Minister G critical minerals on Monday warned against rising coal prices in the informal retail market amid the ongoing West Asia crisis, directing state governments to crack down on profiteering and ensure price stability.

 

“The rates of coal should not increase. If the rates of coal increase, the state government should take responsibility and reduce the rates of coal,” Reddy told reporters on the sidelines of an event marking the launch of the seventh tranche of critical mineral block auctions.

 

He said the Centre has already written to state authorities on the issue. “I have written a letter to the Chief Minister and the Chief Secretary… I have directed the state governments to make sure that the retailers do not take advantage of the current situation and indulge in profiteering,” he said, adding that the Prime Minister has also directed that coal prices should not rise.

   

The remarks come at a time when concerns are mounting over energy supplies and input costs due to geopolitical tensions in West Asia. As the supply of LPG has been squeezed, consumers are moving towards alternative fuels such as coal, pushing up its prices.

 

Reddy said the Centre has taken “proactive measures” to ensure adequate coal availability and prevent undue price escalation, placing the onus on states to monitor retail markets and enforce compliance.

 

The minister was speaking after launching the seventh tranche of auctions for critical and strategic mineral blocks, as the government steps up efforts to secure supplies of key inputs needed for clean energy and advanced technologies.

 

The latest tranche comprises 19 mineral blocks spread across Bihar, Chhattisgarh, Madhya Pradesh, Odisha, Rajasthan, Arunachal Pradesh, Karnataka, Telangana, and Uttarakhand. Of these, 12 blocks are being auctioned for the first time, while seven are being re-auctioned. Seventeen blocks are being offered under composite licences and two under mining leases.

 

The blocks contain minerals such as graphite, rare earth elements (REE), vanadium, tungsten, yttrium, glauconite, and rock phosphate, which are considered critical for sectors ranging from clean energy and fertilisers to strategic industries.

 

The government had amended the Mines and Minerals (Development and Regulation) Act, 1957, in August 2023 to designate 24 minerals as critical and strategic, enabling the Centre to auction mining leases and composite licences for these resources. Revenue from these auctions accrues to the respective state governments.

 

So far, six tranches of auctions have been completed, with 46 blocks successfully auctioned, reflecting what the government described as strong industry participation.

 

The auctions will be conducted through a two-stage ascending forward auction process, with bidders selected based on the highest percentage of value of mineral dispatched quoted.