Govt launches 12th round of commercial coal mine auctions

Coal Minister G Kishan Reddy on Thursday launched the 12^th round of commercial coal mine auctions under which the government is offering 25 blocks from seven coal-bearing states, furthering efforts to boost domestic production and strengthen energy security. Of the total coal mines being offered, 7 blocks are under Coal Mines (Special Provisions) Act, 2015 (CMSP Act) and 18 mines under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act).

Among these, two are lignite mines, which will cater to diverse energy requirements. Besides, 13 coal mines are fully explored, while 12 are partially explored, providing opportunities for both immediate and future development.

In addition, under the 2nd attempt of the 11^th round, the Ministry is offering three partially explored mines under the MMDR Act, providing significant investment opportunities while reinforcing domestic coal production and energy security.

States wise, Chhattisgarh has the largest number of blocks going under the hammer at seven, followed by Jharkhand (5 blocks), Madhya Pradesh (4 blocks) and three mines are being offered in Maharashtra. Two mines each located in Odisha, West Bengal and Rajasthan are also on the block.

In his address, the Coal Minister said the current calendar year is special as India celebrates 175 years of the Geological Survey of India (GSI) and 50 years of Coal India (CIL).

“India is moving ahead with great vigour and speed in enhancing coal production. So far, we have auctioned 125 mines, which will attract over ₹40,000 crore and create more than 4 lakh direct and indirect jobs,” Reddy added.

The 12^th round of auctions is another big step in India’s journey to become Atmanirbhar. It will further reduce coal imports and save foreign exchange. These endeavours effectively aid in boosting the country’s economy, he noted.

The Minister said that public sector undertakings (PSUs) are competing with private sector firms in these auctions thereby enhancing competition and transparency. “This will further accelerate the development of a robust and resilient coal sector, supporting industries, power plants, and infrastructure projects across the country,” Reddy said...A total of 12 coal mines were successfully auctioned, comprising eight fully explored mines and four partially explored coal mines. These 12 mines collectively hold a geological reserve of around 5,759.23 mt, with a cumulative Peak Rated Capacity (PRC) of 15.46 mtpa, excluding partially explored mines, the Ministry said.

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, it added...Production from commercial coal mines have shown significant growth.

Production of coal in FY24 was 12.55 mt and it has increased in FY25 to 22.35 mt (till date) registering a growth of around 78.14 per cent.