Defence Minister launches 7th round of coal mine auctions

30 Mar 2023 , 07:59 AM

On Wednesday, the seventh round of auctions for commercial coal mining blocks was started by Defence Minister Rajnath Singh, offering 106 mines for sale. 45 mines out of the total mines offered in the seventh round have been fully examined, while 61 blocks have only been partially explored.

In the most recent round of auction, up to 95 non-coking coal mines, 10 lignite mines, and one coking coal mine are being sold.

In his speech, Singh stated that coal is regarded as ‘black gold’ and is crucial to the development of the national economy.

According to Singh, the current coal block auctions represent a step in the direction of energy security.

On the MSTC auction platform, you may find information on the mines, the rules of the sale, the deadlines, etc. According to the coal ministry, the auction will take place online in two stages with complete transparency and will be based on a percentage income sharing.

The government would offer rewards to players who begin early production from the mines, according to Coal and Mines Minister Pralhad Joshi, who also extended an invitation to the players to take part in the most recent round.

He added that coal will continue to be used for the following 40 to 50 years.

The Ministry of Coal signed contracts for 28 coal mines that were up for auction in the sixth round of the auction during this time.

The 28 coal mines that were auctioned off in the previous round have a combined PRC (peak rated capacity) of 74 million tonnes per annum (MTPA), and they are predicted to produce an annual revenue of Rs 14,497 crore when computed at PRC.

These mines are projected to produce 1 lakh jobs once they are operating.

In the sixth round of auctions, bidders included JSW Cements, Ultratech Cements, Ambuja Cements, and Jindal Power Ltd. among others.

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