New Delhi: The government on Wednesday launched the seventh round of commercial coal auctions in a bid to increase the availability of dry fuel in the country. A total of 106 coal mines were put on the block in the latest round of auctions. Of the total mines offered, 61 blocks are partially explored, and 45 mines are fully explored. As many as 95 non-coking coal mines, 10 lignite mines, and one coking coal mine are being offered in the latest round of auction.
The government amended the mineral laws to open up the coal sector to provide a level-playing field to the public and private sector players and to permit the auction of coal mines without any restriction on end use. Coal from these mines can be utilised towards own consumption, sale or any other purpose.
The seventh round of commercial coal auction was launched by Defence Minister Rajnath Singh in the national capital in presence of Union Coal and Mines Minister Pralhad Joshi and Minister of State (MoS) Coal and Mines Raosaheb Patil Danve.
In his address, Singh said that coal is considered black gold and plays an important role in strengthening the economy of the country. Coal has contributed in a major way to strengthening the economy of the country. The successful auction of the 106 mines will further strengthen the economy. Coal fulfils a major need of India's energy demand. Not just availability, but utilisation of resources is necessary for the growth of the country.
"Our energy consumption has grown in the last few years and will continue to grow. And to meet this need, we will have to start taking efforts from today," he said. The ongoing auctions of coal blocks are a step towards energy security, Singh said.
The cumulative PRC (peak rated capacity) of the 28 coal mines auctioned under the previous round is 74 million tonnes per annum (MTPA), and these mines are expected to generate annual revenue of Rs 14,497 crore calculated at PRC of these coal mines. Upon operationalisation, these mines are expected to generate employment for one lakh people. Companies like JSW Cement, Ultratech Cement, Ambuja Cement and Jindal Power were the successful bidders in the sixth round of auctions.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)