New Delhi: The Ministry of Coal is set to launch the 11th round of Commercial Coal Mine Auctions on Thursday, December 5, 2024, in the capital. The initiative, aimed at enhancing transparency, competitiveness, and sustainability in the coal sector, will be inaugurated by Union Minister of Coal and Mines G. Kishan Reddy. The event will also feature Minister of State for Coal and Mines Satish Chandra Dubey and Coal Secretary Vikram Dev Dutt.
The upcoming auction includes 27 coal blocks strategically located across various states, designed to promote regional economic development and generate employment. Of these, 20 coal mines will be open for bidding, evenly split between fully explored and partially explored blocks. An additional seven blocks from the second attempt of the 10th round will also be offered, comprising four fully explored and three partially explored mines. All the mines in this round are non-coking coal blocks, intended to meet the nation’s growing energy needs.
During the event, agreements for Coal Mine Development and Production (CMDPAs) and Coal Block Development and Production (CBDPAs) will be signed for nine coal mines. These mines are expected to generate annual revenue of approximately Rs 1,446 crores at peak-rated capacity while creating over 19,000 jobs. Successful bidders from the 10th tranche will also receive their agreements, underscoring the government’s commitment to bolstering domestic coal production and energy security.
Key reforms have marked India’s commercial coal mining auctions. The government has removed restrictions on coal usage and eliminated eligibility criteria, making participation more accessible. The switch from notified pricing to the National Coal Index has introduced market-driven pricing, ensuring greater transparency and fairness. Amendments to mineral laws have further liberalized the sector, creating a level playing field for both public and private players and enabling coal auctions for diverse purposes such as own consumption and sale.
The introduction of the Single Window Clearance System (SWCS) portal has streamlined the process for obtaining necessary approvals, ensuring ease of doing business and expediting mine operationalization. These efforts reflect the Ministry’s focus on building a progressive and resilient coal sector while addressing environmental considerations.
Details regarding the auction process, timelines, and mine specifics are available on the MSTC auction platform. The auctions will be conducted through a transparent online system using the Percentage Revenue Share model.
The launch of the 11th round of auctions, according to the Government, is a significant step towards realising India’s vision of self-reliance in coal production. By tapping into the country’s vast reserves, the government is not only strengthening energy security but also driving economic growth and fostering a sustainable approach to mining practices. /BI/
