Coal ministry to sign agreements for auctioning of 28 coal mines

7th round of auctioning of as many as 106 partially and fully-explored coal and lignite mines to commence on March 29

Coal mines auctioning

New Delhi: The ministry of coal will be signing the agreements for 28 coal mines auctioned under 6th round and launching the seventh round of auction of mines for sale of coal on March 29.

The Union defence minister Rajnath Singh will be the chief guest and launching the next round of auction of fully explored, partially explored, coking and lignite mines in presence of Union coal minister Pralhad Joshi.

The cumulative peak rated capacity (PRC) of the 28 coal mines, which were auctioned under 6th round for which the agreements are being singed is 74 Million Ton Per Annum (MTPA) and these mines are expected to generate annual revenue of ₹14,497 crores calculated at PRC of these coal mines. Upon operationalisation, these mines are expected to generate employment for one lakh people, said a coal ministry officer.

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The coal mines being offered under 7th round are a mix of partially explored, fully explored, coking, non-coking, lignite etc. Of the 106 coal mines offered under 7th round, 61 mines are partially explored coal mines and 45 are fully explored ones. There are 95 non-coking coal mines, one coking coal mine and 10 lignite mines being offered under 7th round of auctions.

Sale of tender document for the seventh round of auctioning will start from March 29. Details of the mines, auction terms, timelines etc. can be accessed on MSTC auction platform. The auction shall be held online through a transparent two stage process, on the basis of percentage revenue share.

Also Read: Coal yield touches 784.41 MT, surpasses last year production

Govt takes various measures to boost indigenous coal production

An inter-ministerial committee (IMC) has also been constituted for the purpose of coal import substitution comprising representatives from ministry of coal, ministry of power, ministry of railways, ministry of shipping, ministry of commerce, ministry of steel, ministry of mines, ministry of micro, small & medium enterprises (MSME), department for promotion of industry & internal trade (DPIIT), Central Electricity Authority (CEA), Coal India Limited, SCCL, Paradip Port Trust, Vishakhapatnam Port Trust and Kolkata Port Trust.

A senior officer of the coal ministry said the committee provides a platform for discussions on a larger forum with the administrative ministries so as to guide them to encourage the coal consumers of their respective sector to eliminate imports of coal.

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The Central government has initiated several steps to ramp up domestic coal production in the country in order to achieve self-reliance to meet the demand from all sectors. Some of the major initiatives undertaken include single window clearance, amendment of Mines and Minerals (Development and Regulation) Act, 1957 to allow captive mines to sell up to 50% of their annual production after meeting the requirement of the end use plants, production through MDO mode, increasing use of mass production technologies, new projects and expansion of existing projects, and auction of coal blocks to private companies/PSUs. 100% foreign direct investment (FDI) has also been allowed for commercial mining.

Domestic coal production increased by 8.67% in 2021-22 over the previous year. In the current financial year till February 2023, domestic coal production has increased over 15% compared to the same period of last year.

Most of the requirement of coal in the country is met through indigenous production/supply. The focus of the government is on increasing the domestic production of coal and to eliminate non-essential import of coal in the country.

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