New Delhi: The Ministry of Coal is set to launch the 16th round of commercial coal mine auctions on Thursday, offering a new set of fully explored and partially explored coal blocks to prospective bidders.
Minister of State for Coal and Mines Satish Chandra Dubey will attend the launch event in New Delhi as the chief guest.
16th Auction Round to Offer New Coal Blocks
The latest auction round will include both fully explored and partially explored coal blocks under the commercial coal mining framework.
The Ministry said the auction system continues to provide liberal terms for companies seeking to enter the commercial coal mining sector.
Key features include:
- No restrictions on the end use of coal.
- 100% Foreign Direct Investment (FDI) permitted through the automatic route.
- Low upfront payments that can be adjusted against future revenue share.
- Opportunities for smaller and first-time bidders as well as established mining companies.
147 Coal Mines Auctioned in 15 Rounds
Commercial coal mining was launched in 2020. According to the Ministry of Coal, 15 auction rounds have been completed since then, resulting in the successful auction of 147 coal mines.
The auctions have also brought 44 new companies into the commercial coal mining sector
The Ministry estimates that the auctioned mines are expected to generate:
- Around ₹47,500 crore in annual revenue.
- Nearly ₹55,000 crore in capital investment.
- Around 4.9 lakh employment opportunities across coal-bearing states.
Government Links Auctions to Domestic Coal Production
The Ministry said the commercial coal auction programme has contributed to increasing domestic coal production and availability and reducing dependence on imports.
The latest auction round is intended to bring additional coal blocks into production and support further investment and employment in coal-bearing regions.
Focus on Investment and Energy Security
The commercial coal mining framework is part of the government’s broader effort to expand domestic coal availability and strengthen energy security.
The Ministry of Coal said it remains focused on maintaining a reliable and affordable energy supply, while using the commercial mining auction mechanism to bring more coal resources into production.
