Govt earned 24% average revenue share via commercial coal mine auctions: Minister G Kishan Reddy

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The government has earned an average revenue share of 24.37 percent through commercial coal block auctions so far, with the highest revenue share (36.27 percent) earned through the 11th round of auctions, Union Minister for Coal and Mines G Kishan Reddy said on March 27, during the launch of the 12th round of commercial coal blocks.

Minister Reddy said going forward, sustainability will be a key in coal mining activities, adding that the government has no plan to reduce exploration and mining of fresh coal reserves.

“Auctions of commercial coal mines have attracted widespread participation over the last few rounds. We have seen an average revenue share of 24.37 percent until the 10th round. The encouraging participation and the increase of the average revenue share shows the faith of investors in the coal sector. More auctions are important, but timely operationalisation of mines is equally important,” Reddy said.

In the 11th round, Jindal Steel and Power (JSPL), Jindal Power and Coal India-arm Western Coalfields are among the 10 companies which bagged coal blocks, and were handed the agreements on March 27.

Under round 12, a total of 25 coal mines are being offered, comprising 7 mines under Coal Mines (Special Provisions) Act, 2015 and 18 mines under Mines and Minerals (Development and Regulation) Act, 1957. Among these, 2 are lignite mines, catering to diverse energy requirements. Furthermore, 13 coal mines are fully explored, while 12 are partially explored, providing opportunities for both immediate and future development, the Ministry of Coal said in a statement. In addition, under the second attempt of round 11, the Ministry of Coal is offering three partially explored coal mines under the Mines and Minerals (Development and Regulation) Act, 1957.

Since the inception of commercial coal mining in 2020, the Centre has auctioned a total of 125 coal mines, with a combined production capacity of 273.06 million tons per annum (MTPA). 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.