6th Round Of Auctions Of Commercial Coal Mines Receives Huge Response
29 auctioned Coal Mines, having Geological Reserves of 8160 Million Tonnes, likely to attract Capital Investment of Rs. 11,250 crore
Ministry of Coal had launched the auctions of coal mines for commercial mining under 6th round and 2nd attempt of 5th round on 3rd November 2023, the biggest tranche of auction of commercial coal mines, which has drawn to a close today. In the auctions held a cumulative 29 coal mines were successfully auctioned. The details of the coal mines auctioned are as under:-
- 22 coal mines are fully explored coal mines and 7 coal mines are partially explored coal mines
- The total geological reserves for these 29 coal mines are ~8160 Million Tonnes.
- Cumulative PRC for these coal mines is 74.96 MTPA (excluding Partially Explored coal mines).
The auctions witnessed a strong competition, with a lot of first-time bidders in this round and an average revenue share of 22.12 %. This is a testament to the continued interest in the coal mining sector and the stable future of coal mining in India. This also signify that the reforms brought in by the Government in the coal sector through the introduction of commercial coal mining have been well received by the industry.
The mine-wise result for auctions held is as under:
|S. No.||Name of the Mine||State||PRC (mtpa)||Geological Reserves (MT)||Closing Bid Submitted by||Final Offer (%)|
|1||Choritand Tiliaya||Jharkhand||0.78||97.04||Rungta Metals Pvt. Ltd.||11.25%|
|2||Dongeri Tal-II||Madhya Pradesh||2.90||158.45||Mahavir Coal Resources Private Limited||24.75%|
|3||Datima||Madhya Pradesh||0.36||13.30||Shree Cement Limited||27.25%|
|4||Arjuni East||Madhya Pradesh||1.36||106.12||Ultratech Cement Limited||79.25%|
|5||Arjuni West||Madhya Pradesh||NA||110.17||Ganga Khanij Private Limited||25.25%|
|6||Baitarni West||Odisha||15.00||1,152.11||Gujarat Mineral Development Corporation Ltd||33.50%|
|7-8||Banai & Bhalumuda||Chhattisgarh||12.00||1,376.07||JSW Steel Limited||43.00%|
|9||Binja||Jharkhand||NA||50.00||Assam Mineral Development Corporation Limited||21.25%|
|10||Burakhap Small Patch||Jharkhand||0.40||9.68||Shreesatya Mines Private Limited||45.50%|
|11||Burapahar||Odisha||6.00||547.89||Gujarat Mineral Development Corporation Ltd||40.75%|
|12||Chhendipada (Revised)||Odisha||NA||513.09||Rungta Sons Private Limited||13.00%|
|13||Dahegaon-Gowari||Maharashtra||0.50||162.79||Ambuja Cements Limited||5.50%|
|14||Gare Palma Sector – I(East)||Chhattisgarh||15.00||965.00||Jindal Power Limited||9.00%|
|15-16||Gare Palma Sector IV/2 and Gare Palma Sector IV/3||Chhattisgarh||7.00||186.86||Jindal Power Limited||30.75%|
|17||Gondbahera Ujheni||Madhya Pradesh||4.12||672.87||MP Natural Resources Private Limited||7.00%|
|18||Kalambi Kalmeshwar (Western Part)||Maharashtra||NA||47.78||Samlok Industries Private Limited||15.00%|
|19||Khagra Joydev||West Bengal||3.00||178.26||Orissa Metallurgical Industry Private Limited||5.00%|
|20||Mandla North||Madhya Pradesh||1.50||195.37||Dalmia Cement (Bharat) Limited||21.00%|
|21||Marwatola – VI||Madhya Pradesh||1.50||78.997||JSW Cement Limited||42.50%|
|22||Marwatola – VII||Madhya Pradesh||1.50||188.70||Rama Cement Industries Private Limited||15.50%|
|23||Namchik Namphuk||Arunachal Pradesh||0.20||14.97||Coal Pulz Private Limited||65.50%|
|24||North West of Madheri||Maharashtra||NA||200.00||MH Natural Resources Private Limited||5.50%|
|25||Parbatpur Central||Jharkhand||1.24||234.52||JSW Steel Limited||31.50%|
|26||Patal East (Eastern Part)||Jharkhand||0.30||35.00||RCR Steel Works Private Limited||6.00%|
|27||Purunga||Chhattisgarh||NA||260.00||CG Natural Resources Private Limited||5.50%|
|28||Sakhigopal – B Kankili||Odisha||NA||500.00||Rungta Sons Private Limited||6.50%|
|29||Sitanala||Jharkhand||0.30||108.85||JSW Steel Ltd.||5%|
Coal production from these mines would significantly reduce the demand for imported thermal coal and will also reduce dependence on public sector coal mining companies. The commercial coal mine auctions will create value for the society in the form of job creation and infrastructure development in the coal bearing areas and also make a sizeable contribution to the states’ revenues with Annual Revenue generation of Rs. 14,650 crores (excluding Partially Explored coal mines) calculated at PRC of these coal mines.
It is expected that these auctions shall result in the capital investment of approximately Rs 11,250 crore and employment generation for 1,00,000 people approximately.
The monetized value of these mines is Rs. 71,192 Crores exceeding the target set by Ministry of Finance. These mines once operational will contribute to more than 7% of country’s coal requirement.