New Delhi,Chhattisgarh. Asal Baat news. The Ministry of Coal has launched the 11 th round of coal mine auctions for commercial mining on D...
New Delhi,Chhattisgarh.
Asal Baat news.
The Ministry of Coal has launched the 11th round of coal mine auctions for commercial mining on December 05, 2024 marking another significant step in India’s journey towards self-reliance in the coal sector. In the forward auctions, a total of twelve coal mines were successfully auctioned, comprising eight fully explored mines and four partially explored coal mines.
These twelve mines collectively hold a geological reserve of approximately 5,759.23 million tonnes, with a cumulative Peak Rated Capacity (PRC) of 15.46 Million Tonnes Per Annum (MTPA), excluding partially explored mines. The auctions witnessed intense competition, achieving an impressive average revenue share of 36.27%, reflecting the sustained interest of industries in India’s coal sector and the Ministry’s commitment to providing a stable and transparent policy framework.
The mine-wise result for auctions held is as under:
The newly auctioned mines are projected to generate an annual revenue of ~₹3,330 crore (excluding partially explored mines) and attract a capital investment of approximately ₹2,319 crore. Additionally, these mines are expected to create 20,902 employment opportunities, significantly contributing to economic development in coal-bearing regions.
Removing the Restrictions on Coal Purchases for Power Plants
Supply of coal to thermal power plants was earlier governed by New Coal Distribution Policy, 2007 (NCDP). The provisions of coal linkages of NCDP for power sector have been replaced by the Shakti Policy, 2017. Coal under these policies is supplied as per the commercial terms and conditions of the Fuel Supply Agreement (FSA) executed between the coal companies and the power plants. It has been decided by the Government in 2022 that the coal to meet the full Power Purchase Agreement (PPA) requirement of all the existing linkage holders of Power Sector shall be made available by the coal companies irrespective of the trigger and Annual Contracted Quantity (ACQ) levels. Coal Supply beyond the ACQ under the FSA has enabled supply of coal as per the requirement of the power plants. In addition, coal is also sold by the coal companies under the Single Window e-auctions, which caters to all the sectors including power sector.
In case of coal supply under FSA, pricing of coal is done as per commercial terms, conditions of the FSA and the price notifications issued by Coal India Limited / Singareni Collieries Company Limited from time to time.
The focus of the Government is on increasing the domestic production of coal to ensure sufficient availability of domestic coal. The country has witnessed highest ever coal production in the year 2023-24. The all-India coal production during the year 2023-24 was 997.826 Million Tonne (MT). In the current year 2024-25, the country has produced 929.15 MT (provisional) of coal (upto February, 2025) in comparison to 881.16 MT in the corresponding period of the last year 2023-24 with a growth rate of 5.45%.
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