Govt auctions 12 coal mines, to yield annual revenue of Rs 3,330 crore

New Delhi: The Ministry of Coal has successfully auctioned a total of 12 coal mines, comprising eight fully explored mines and four partially explored coal mines across five states, according to an official statement issued on Monday.

The newly auctioned mines are projected to generate an annual revenue of Rs 3,330 crore (excluding the partially explored mines) and attract a capital investment of approximately Rs 2,319 crore. Additionally, these mines are expected to create 20,902 employment opportunities, significantly contributing to economic development in coal-bearing regions, the statement said.

The mines are located in Maharashtra, Chhattisgarh, Jharkhand, Arunachal Pradesh, and Odisha.

These twelve mines collectively hold a geological reserve of approximately 5,759.23 million tonnes, with a cumulative peak-rated capacity of 15.46 Million Tonnes Per Annum (MTPA), excluding partially explored mines. The auctions witnessed intense competition, achieving an impressive average revenue share of 36.27 per cent, reflecting the sustained interest of industries in India’s coal sector and the ministry’s commitment to providing a stable and transparent policy framework, the statement said.

The Ministry of Coal launched the 11th round of coal mine auctions for commercial mining on December 5, 2024, marking another significant step in India’s journey towards self-reliance in the coal sector. In the forward auctions, a total of twelve coal mines were successfully auctioned, the statement added.

Since the inception of commercial coal mining in 2020, the Ministry of Coal has successfully auctioned a total of 125 coal mines, with a combined production capacity of 273.06 Million Tonnes per year. Once operationalised, these mines will play a crucial role in enhancing domestic coal production and strengthening India’s energy security. Collectively, these mines are expected to generate an annual revenue of Rs 38,767 crore, attract a capital investment of Rs 40,960 crore, and create employment opportunities for approximately 4,69,170 people.

Production from commercial coal mines has shown an over 78 per cent growth from 12.55 MT in FY 23-24 to 22.35 MT in FY 24-25, the statement added.

–IANS