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 MineStatePRC (mtpa)Geological Reserves (MT)Closing Bid Submitted byFinal Offer (%)
1Choritand TiliayaJharkhand0.7897.04Rungta Metals Pvt. Ltd.11.25%
2Dongeri Tal-IIMadhya Pradesh2.90158.45Mahavir Coal Resources Private Limited24.75%
3DatimaMadhya Pradesh0.3613.30Shree Cement Limited27.25%
4Arjuni EastMadhya Pradesh1.36106.12Ultratech Cement Limited79.25%
5Arjuni WestMadhya PradeshNA110.17Ganga Khanij Private Limited25.25%
6Baitarni WestOdisha15.001,152.11Gujarat Mineral Development Corporation Ltd33.50%
7-8Banai & BhalumudaChhattisgarh12.001,376.07JSW Steel Limited43.00%
9BinjaJharkhandNA50.00Assam Mineral Development Corporation Limited21.25%
10Burakhap Small PatchJharkhand0.409.68Shreesatya Mines Private Limited45.50%
11BurapaharOdisha6.00547.89Gujarat Mineral Development Corporation Ltd40.75%
12Chhendipada (Revised)OdishaNA513.09Rungta Sons Private Limited13.00%
13Dahegaon-GowariMaharashtra0.50162.79Ambuja Cements Limited5.50%
14Gare Palma Sector – I(East)Chhattisgarh15.00965.00Jindal Power Limited9.00%
15-16Gare Palma Sector IV/2 and Gare Palma Sector IV/3Chhattisgarh7.00186.86Jindal Power Limited30.75%
17Gondbahera UjheniMadhya Pradesh4.12672.87MP Natural Resources Private Limited7.00%
18Kalambi Kalmeshwar (Western Part)MaharashtraNA47.78Samlok Industries Private Limited15.00%
19Khagra JoydevWest Bengal3.00178.26Orissa Metallurgical Industry Private Limited5.00%
20Mandla NorthMadhya Pradesh1.50195.37Dalmia Cement (Bharat) Limited21.00%
21Marwatola – VIMadhya Pradesh1.5078.997JSW Cement Limited42.50%
22Marwatola – VIIMadhya Pradesh1.50188.70Rama Cement Industries Private Limited15.50%
23Namchik NamphukArunachal Pradesh0.2014.97Coal Pulz Private Limited65.50%
24North West of MadheriMaharashtraNA200.00MH Natural Resources Private Limited5.50%
25Parbatpur CentralJharkhand1.24234.52JSW Steel Limited31.50%
26Patal East (Eastern Part)Jharkhand0.3035.00RCR Steel Works Private Limited6.00%
27PurungaChhattisgarhNA260.00CG Natural Resources Private Limited5.50%
28Sakhigopal – B KankiliOdishaNA500.00Rungta Sons Private Limited6.50%
29SitanalaJharkhand0.30108.85JSW 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.

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