In a significant move towards ensuring energy security and fostering economic development, the Ministry of Coal is set to launch the 9th round of Commercial Coal Mine Auctions on December 20, 2023. The event will be graced by the Minister of Coal, Mines, and Parliamentary Affairs, Pralhad Joshi, as the chief guest, with Minister of State for Railways, Coal & Mines, Raosaheb Patil Danve, serving as the guest of honour.
This initiative aims to enhance the participation of private players in the coal sector, promoting competition, efficiency, and innovation while contributing to sustainable development. Building on previous successes in coal production and dispatch from Captive and Commercial Coal Mines, the Ministry continues its commitment to shaping the nation’s energy landscape through prudent coal reforms.
The 9th round will offer a total of 26 coal mines, including 3 under the CM (SP) Act 2015 and 23 under the MMDR Act 1957. Among these, 7 coal mines are Fully Explored, while 19 are Partially Explored. Notably, there are no restrictions on the sale or utilisation of coal, and eligibility criteria have been eliminated, ensuring broader participation.
State-wise snapshot of mines being offered:
- Chhattisgarh: 8 mines (2 CM(SP) Act, 6 MMDR Act)
- Jharkhand: 5 mines (5 MMDR Act)
- Madhya Pradesh: 12 mines (1 CM(SP) Act, 11 MMDR Act)
- Telangana: 1 mine (1 MMDR Act)
Unlike previous auctions, the Ministry has shifted from the notified price to the National Coal Index for transparency and fairness, establishing a market-driven pricing mechanism. The removal of technical and financial barriers, coupled with amendments to mineral laws, has unlocked the coal sector, providing an equitable playing field for both public and private sector players.
In a bid to facilitate ease of doing business, the Ministry has introduced a Single Window Clearance System (SWCS) portal. This portal streamlines the process of obtaining various clearances, expediting the operationalisation of coal mines and boosting coal production through a single gateway.
The auctions will be conducted online through a transparent process based on the Percentage Revenue Share model. Detailed information about the mines, auction terms, timelines, and more can be accessed on the MSTC auctions platform.
