Centre completes seventh tranche of coal block auctions successfully
1 min read 04 Aug 2023, 07:20 PM ISTThe auction, which also included the second attempt of the sixth round, concluded on 3 August, 2023, and saw all six coal mines in four states being successfully auctioned
PremiumNew Delhi: The ministry of coal on Friday said it has completed the seventh tranche of coal block auctions. The auction, which also included the second attempt of the sixth round, concluded on 3 August, 2023, and saw all six coal mines in four states being successfully auctioned.
Among the mines auctioned, two coal mines are fully explored while four are partially explored.
“The Ministry of Coal has successfully completed the auction of coal mines for Commercial Mining under 7th round and second attempt of 6th round. After assessment of bids, the forward e-auctions for six mines had commenced from August 1, 2023, culminating in the successful auction of all six mines on 3rd August, 2023," the government said in a statement.
It added that the total geological reserve for these six coal mines is at over 2,105 million tonne.
The cumulative peak rated capacity (PRC) for these coal mines is 7 MTPA, (excluding the partially explored coal mines). The average revenue share has shown an upward trend, increasing from 22.12% in the previous tranche to 23.71%.
According to the ministry, coal production from these mines will help reduce the demand for imported thermal coal and decrease reliance on public sector coal mining companies.
The commercial coal mine auctions will bring about positive changes for society, by creating job opportunities and infrastructure development in the coal-bearing regions.
Moreover, they are expected to make a substantial contribution to the states‘ revenues, generating an estimated annual revenue of approximately ₹787 crore (excluding partially explored coal mines) calculated at the peak rated capacity (PRC) of these coal mines.
These auctions are also anticipated to attract a capital investment of approximately ₹1,050 crore, leading to creation of around 9,464 employment opportunities, it added.
With the successful auctioning of these six coal mines, the total number of coal mines auctioned under commercial auctions now stands at 92.
These mines are projected to generate an annual revenue of approximately ₹34,185 crore (excluding partially explored coal mines) calculated at the current PRC of coal mines, the ministry said.
The operationalization of these coal mines is expected to lead to a capital investment of around ₹34,486 crore and generate employment opportunities for approximately 310,818 people, it added.
