BackJindal Power, JSW Steel, Ambuja Cement bag coal mines in latest auctions
Jindal Power bags two mines in Chhattisgarh, JSW Steel three mines in Jharkhand and Ambuja Cements one mine in Maharashtra
PremiumNEW DELHI : Jindal Power, JSW Steel, Ambuja Cement, UltraTech Cement were among the winners of coal mines in the latest auction which closed on Thursday.
The union ministry of coal had launched the auctions of coal mines for commercial mining under sixth round and second attempt of fifth round on third November 2023, the biggest tranche of auction of commercial coal mines, which has drawn to a close on Thursday. In the auctions held a cumulative 29 coal mines were successfully auctioned.
Among the major players, Jindal Power Ltd bagged two mines in Chhattisgarh, JSW Steel won three mines in Jharkhand and Ambuja Cements picked a mine in Maharashtra under the auctions, showed a statement from the ministry.
Out of the 29 mines in auctions, 22 coal mines are fully explored coal mines and seven coal mines are partially explored coal mines. The total geological reserves for these 29 coal mines are 8160 million tonnes.
Cumulative PRC for these coal mines is 74.96 MTPA (excluding partially explored coal mines). The auctions witnessed a strong competition, with a lot of first-time bidders in this round and an average revenue share of 22.12 %.
“This is a testament to the continued interest in the coal mining sector and the stable future of coal mining in India. This also signify that the reforms brought in by the Government in the coal sector through the introduction of commercial coal mining have been well received by the industry," the ministry said.
According to the ministry, coal production from these mines would significantly reduce the demand for imported thermal coal and will also reduce dependence on public sector coal mining companies. The commercial coal mine auctions will create value for the society in the form of job creation and infrastructure development in the coal bearing areas and also make a sizeable contribution to the states’ revenues with Annual Revenue generation of ₹14,650 crores (excluding partially explored coal mines) calculated at PRC of these coal mines.
It is expected that these auctions shall result in the capital investment of approximately ₹11,250 crore and employment generation for around one lakh people.
The monetized value of these mines is ₹71,192 crores exceeding the target set by the finance ministry. These mines once operational will contribute to more than 7% of country’s coal requirement.
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