Govt to launch ninth round of coal mines auction on Dec 20: Coal Ministry

Coal

The Union government will launch the ninth round of commercial coal mine auctions on December 20, the Ministry of Coal announced on December 18.

A total of 26 coal mines will be offered in the upcoming round of these three mines will be offered under the Coal Mines (Special Provisions) Act 2015 (CMSP), while the 23 mines under the Mines and Minerals (Development and Regulation) (MMDR) Act 1957. Of the 26 coal mines to be launched for auctions, 12 are in Madhya Pradesh, eight in Chhattisgarh, five in Jharkhand, and one in Telangana.

India will continue to rely on coal for power generation for at least another decade. This is because of two reasons revolving around energy security and affordability — the unprecedented growth in power demand is likely to touch 335 GW by 2030 from the current 240 GW, and the high costs involved in energy storage which acts as a barrier to round-the-clock renewable energy supply.

To meet the growing demand, the government has revised its plan to increase the country’s coal-fired power generation capacity to about 80 GW by 2030 instead of 51 GW as was planned earlier. This means more coal needs to be mined for increased supply to thermal power plants.

Among the 26 coal mines to be put on auction, seven mines are fully explored, while 19 are partially explored. Additionally, five coal mines are being offered under the second attempt of round seven of commercial coal auctions that include four CMSP coal mines and one MMDR coal mine. Of these, four are fully explored, and one is partially explored, the ministry said in a statement.

"Unlike previous commercial coal mine auctions, there are no restrictions on the sale or utilisation of coal. Notably, eligibility criteria have been eliminated, removing any technical or financial barriers to participation. Also, a strategic shift from the notified price to the National Coal Index ensures transparency and fairness, establishing a market-driven pricing mechanism," the Ministry said.

For ease of doing business, the Ministry of Coal has conceptualised a single window clearance system (SWCS) portal for obtaining various clearances for the early operationalisation of coal mines, ultimately resulting in the augmentation of coal production in the country through a single gateway.

The upcoming ninth round of commercial coal auctions is poised to enhance the participation of more private players in the coal sector, fostering competition, efficiency, innovation and contributing to sustainable development.

The amendment of mineral laws has been instrumental in unlocking the coal sector, providing a level playing field for both public and private sector players and allowing auctions for various purposes, including own consumption and sale.

Minister of Coal, Mines and Parliamentary Affairs, Pralhad Joshi will launch the ninth round of the coal mine auctions, while Minister of State for Railways, Coal and Mines Raosaheb Patil Danve will be the guest of honour on the occasion.