New Delhi: Terming the coal mining sector as one of the key drivers of Aatmanirbharta (self-reliance) in India, Minister for Coal G Kishan Reddy said that moving forward, the coal sector will not only drive India’s USD 5-trillion economy goals, but also support net zero climate commitments. Reddy was speaking at the launch ceremony of the 12th round of commercial coal mine auction. The minister termed the private sector’s participation in coal mining as a vital element for increasing India’s coal production.
The minister said that the Modi government has so far auctioned 125 coal mines under the commercial coal mine auction regime, which is expected to attract investments of more than Rs 40,000 crore and create 4 lakh direct and indirect jobs. “Today, with the 12th tranche, we are taking another big step, auctioning 28 more coal and lignite blasts. These auctions reduce coal imports, save foreign exchange, and make India truly Atmanirbhar. Every coal block auction boosts jobs, logistics, and downstream industries, creating opportunities and contributing to national development growth. In the auction system, public sector PSUs are competing with the private sector, which has led to greater efficiency,” said Reddy.
“I am happy to share that through our continuous reforms, many first-time bidders in the last two rounds and five new companies have bought coal mines. So far, allocations have been strong, with an average revenue share of 24.37 percent. The 11th round saw a record high revenue share of 36.27 percent, the highest among the commercial coal mine options. The increase of the participation and increase of average revenue share shows the strength of investors in the coal sector, commercial coal mine action policy and the government of India,” said the minister.
He stressed that timely operationalisation of mines is equally critical. “I urge all the public and private sector companies to focus on speedy mine operations,” he said.
Out of the 25 coal mines on offer under the 12th round, seven mines are under CMSP (Coal Mines (Special Provisions) Act, 2015) and 18 mines are being offered under MMDR (Mines and Minerals (Development and Regulation) Act, 1957). Among these, two are lignite mines, catering to diverse energy requirements. Moreover, 13 coal mines are fully explored, while 12 are partially explored, providing opportunities for both immediate and future development.
In addition, under the 2nd Attempt of Round 11, the Ministry of Coal is offering three partially explored coal mines under the MMDR Act, providing significant investment opportunities while reinforcing domestic coal production and energy security. For this round, pre-bid meeting is scheduled to take place on April 11, the last date for receiving written queries from bidders is April 25 and the last date for sale of tender document is May 20. Technical bids will be opened on May 26 and the final e-auction will take place between June 9-20.
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