The Ministry of Coal has successfully concluded the 10th round of coal mine auctions for commercial mining, which was launched on June 21, 2024. The forward auctions led to the successful allocation of nine coal mines, comprising three fully explored and six partially explored mines. These mines collectively hold a substantial geological reserve of approximately 3,998.73 million tonnes, with a cumulative Peak Rated Capacity (PRC) of 14.10 million tonnes per annum (MTPA), excluding partially explored coal mines.
The auction results demonstrate strong participation and competitive bidding. Among the mines auctioned, Bundu in Jharkhand, with a PRC of 1 MTPA and geological reserves of 102.268 million tonnes, was awarded to S M Steels and Power Limited with a final revenue share offer of 16.75%. In Chhattisgarh, Gare Palma IV/5, with a PRC of 1.10 MTPA and reserves of 77.990 million tonnes, was allocated to Sarda Energy and Minerals Limited with a final bid of 25.75%. Meanwhile, Kerendari-BC North in Jharkhand, which holds reserves of 600 million tonnes, was secured by Orissa Alloy Steel Private Limited with a final offer of 23.25%.
Other notable allocations include Marwatola South in Madhya Pradesh, awarded to Mineware Advisors Private Limited with reserves of 126.3 million tonnes, and New Patrapara South in Odisha, which has a geological reserve of 720.87 million tonnes and was secured by NLC India Limited with a bid of 5.50%. The auction also saw competitive bidding for Ulia Gamhardih in Chhattisgarh, with S M Steels and Power Limited winning the mine, which holds 587.7 million tonnes of reserves, at a revenue share of 42.50%.
The average revenue share achieved in these auctions stands at 17.44%, underscoring the sustained interest of industries in the coal sector. These auctions are expected to generate an annual revenue of approximately ₹1,446 crore (excluding partially explored mines), attract a capital investment of around ₹2,115 crore, and create employment opportunities for 19,063 individuals. The success of this round highlights the Ministry’s ongoing efforts to provide a stable and transparent policy framework, fostering growth and attracting investments in the coal sector.
Since the introduction of commercial coal mining in 2020, a total of 113 coal mines have been auctioned, with a combined production capacity of 257.60 MTPA. These initiatives are anticipated to significantly boost domestic coal production and contribute to the country’s self-reliance in the coal sector. Once operational, these mines are projected to generate annual revenue of ₹35,437 crore, attract capital investment of ₹38,641 crore, and provide employment to over 3,48,268 people in coal-bearing regions.
