New Delhi: The Ministry of Coal launched the 16th round of commercial coal mine auctions on Thursday, offering 25 coal blocks across nine states. Minister of State for Coal and Mines Satish Chandra Dubey launched the round at an event in New Delhi. Of the 25 blocks, 21 are fully explored and four are partially explored. They are located in Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana and West Bengal.
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Six blocks are offered under the Coal Mines (Special Provisions) Act, and the other 19 under the Mines and Minerals (Development and Regulation) Act.
According to the ministry, the round is open to experienced mining companies, new entrants and technology-driven enterprises. Under the commercial coal mining framework, there are no restrictions on how the coal is used. The framework also allows 100 percent foreign direct investment through the automatic route. Upfront payments are kept low and can be adjusted against future revenue share.
At the same event, Dubey and Coal Secretary Vikram Dev Dutt handed over Coal Mine Development and Production Agreements to the successful bidders for six mines auctioned in earlier rounds. The six mines are Tara (Revised), Margo West, Margo East, Mandla South, Dongeri Tal-II and Dip Side of PKoC. The successful bidders include CG Syn-Gas & Chemicals Ltd, Jharkhand Exploration and Mining Corporation Limited, Qube Commercial Pvt Ltd, Gallant Ispat Ltd and The Singareni Collieries Company Limited.
Together, the six mines hold geological reserves of about 1,504 million tonnes. Their combined peak rated capacity is 11.62 million tonnes per annum. Once they are operational, the ministry expects them to generate annual revenue of around Rs 1,984 crore and attract capital investment of nearly Rs 1,743 crore. It also expects them to create about 15,700 jobs in the coal-bearing regions where they are located.
The ministry said 147 coal mines have been auctioned since Prime Minister Narendra Modi opened the sector to commercial mining in 2020. According to the ministry, these mines are expected to generate over Rs 47,500 crore in annual revenue. It puts their projected capital investment at more than Rs 55,000 crore.
In his address, Dubey said coal meets around 55 percent of India's primary energy requirement and over 70 percent of its electricity generation. He noted that coal production has crossed 1 billion tonnes for the second year in a row.
According to the ministry's statement, Dubey said the government is making the coal sector more transparent, competitive and technology-driven. He stressed the need for a level playing field and an environment that draws investment and wider participation in commercial mining. He said India's domestic coal resources must be unlocked to raise production and reduce dependence on imports. At the same time, he said, the country's coal reserves must be used efficiently and sustainably. He also urged stakeholders to take part in the auction process.
Rupinder Brar, Additional Secretary and Nominated Authority, pointed to the rise in coal production from captive and commercial mines in recent years. She said her office remains open and accessible to all stakeholders. According to the statement, it will continue to engage with them and address their concerns and queries.
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Sanoj Kumar Jha, Additional Secretary in the ministry, spoke about coal gasification as a way to add value to India's coal resources. He said the country needs to adopt technology faster and build a stronger ecosystem for next-generation coal use. He also said India should learn from the best global technologies and practices, while developing solutions suited to its own needs.
