The Ministry of Coal on Thursday (September 17) handed over Coal Mine Development and Production Agreements (CMDPAs) for six mines auctioned in earlier rounds, a move expected to generate about Rs 1,984 crore in annual revenue once the projects become operational.

The six mines are projected to attract nearly Rs 1,743 crore in capital investment and create around 15,700 jobs. Together, they hold geological reserves of approximately 1,504 million tonnes and have a combined peak rated capacity of 11.62 million tonnes per annum.

Coinciding with the handover, the ministry launched the 16th round of commercial coal mine auctions, offering 25 coal blocks across nine coal-bearing states to further increase domestic production and private participation in the sector.

The Minister of State (MoS) for Coal and Mines Satish Chandra Dubey, launched the latest auction round in Delhi.

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The agreements were signed for:

  • Tara (Revised)
  • Margo West
  • Margo East
  • Mandla South
  • Dongeri Tal-II
  • Dip Side of Prakasam Khani Open Cast (PKoC) coal mines

The successful bidders include:

  • CG Syn-Gas and Chemicals Limited
  • Jharkhand Exploration and Mining Corporation Limited
  • Qube Commercial Private Limited
  • Gallant Ispat Limited
  • The Singareni Collieries Limited

Coal Secretary Vikram Dev Dutt was also present at the event and handed over the CMDPAs to the bidders. The agreements allow the six mines to move towards production.

25 blocks offered in latest round

The 16th auction round includes 25 coal blocks. Of these, 21 are fully explored mines, while four are partially explored. The blocks are located across Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana and West Bengal.

Auctioned blocks are being offered under two legal frameworks:

  • Six blocks under the Coal Mines (Special Provisions) Act, or CMSP Act.
  • 19 blocks under the Mines and Minerals (Development and Regulation) Act, or MMDR Act.

The ministry also mentioned that the auction is open to established mining companies, new entrants and technology-driven enterprises.

Commercial mining framework

The commercial coal mining framework allows successful bidders to sell coal without restrictions on its end use. This enables companies to supply coal to power producers, industrial units, steel manufacturers and other consumers, depending on market demand.

The framework also permits 100 per cent foreign direct investment (FDI) through the automatic route. In addition, bidders benefit from low upfront payments, which can be adjusted against future revenue sharing. The government has positioned these provisions as measures aimed at improving competition, attracting investment and also encouraging broader participation in the coal sector.

147 mines auctioned so far

With the launch of the latest round, India’s commercial coal mine auction programme has completed 16 rounds since commercial mining was opened to private participation in 2020 and was launched by Prime Minister Narendra Modi.

The Ministry of Coal said that 147 coal mines have been auctioned so far. These mines are expected to generate cumulative annual revenue of more than Rs 47,500 crore and attract capital investment exceeding Rs 55,000 crore across nine coal-bearing states.

According to the coal ministry, the programme is expected to increase domestic coal production, reduce dependence on imports and support the country’s growing energy needs.

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Coal remains central to energy supply

Addressing the launch, Satish Chandra Dubey highlighted the continuing importance of coal in India’s energy mix. According to the ministry, “coal meets around 55 per cent of the country’s primary energy requirement and contributes more than 70 per cent of its electricity generation.”

“Coal continues to play a vital role in meeting India’s energy requirements,” MoS Dubey said, underlining the importance of domestic production and ensuring a dependable supply. The government has said that increased domestic mining will help provide reliable and affordable energy to households and industries.

Additional Secretary and Nominated Authority Rupinder Brar said the coal sector was moving towards a more transparent, competitive and technology-enabled system. She said the auction programme could help unlock domestic coal resources, attract new investments and create employment opportunities in mining regions.

“The coal sector is moving towards a more transparent, technology-enabled and competitive ecosystem,” Brar said, while highlighting the potential for wider participation and faster development of coal blocks.

The ministry has also been encouraging the use of modern mining technologies to improve productivity, safety and environmental management.

Coal gasification gains focus

Additional Secretary Sanoj Kumar Jha highlighted coal gasification as an important area for adding value to India’s coal resources. Coal gasification converts coal into synthetic gas, which can be used in the production of chemicals, fuels, fertilisers and other industrial products. The ministry believes the technology could support more innovative and efficient utilisation of domestic coal.

Jha stressed the need for faster adoption of technology and greater use of international technologies and best practices suited to Indian conditions. The focus on gasification is part of the government’s effort to diversify coal utilisation beyond conventional combustion for power generation.

Focus on energy security

The Ministry of Coal said it would continue to focus on sectoral reforms, wider participation and increased investment. It also aims to ensure a stable and affordable supply of energy while improving the efficiency of domestic coal production.

As per the ministry, the latest auction and agreements for six previously auctioned mines are expected to create revenue, jobs and support industrial growth. The six mines alone are projected to generate annual revenue of Rs 1,984 crore, over 15,000 job opportunities and around Rs 1,743 crore in capital investment.