Government auctions off 29 coal blocks for commercial mining

10 Mar 2023 , 09:29 AM

The 29 coal blocks successfully bid out for commercial mining by the government are expected to increase average dry fuel output by 7% over the next two years, with a combined peak-rated capacity (PRC) of around 91 million tonnes.

Sources report that the 29 coal blocks that have been successfully bid out contain approximately 91 million tonnes of Potential Recoverable Coal (PRC). This amount represents an increase of 7% compared to the current national average PRC of coal reserves.

According to sources, all 29 coal reserves that were put up for commercial mining auction by the Coal Ministry last month have been successfully bid out. The final mine was also bid out earlier on Thursday.

With all 29 mines expected to begin production by 2024-25, or within the next two years, the government hopes that all of these coal mines combined will increase overall national average output by 7%.

On November 3, 2022, the ministry launched an auction of coal reserves for commercial mining in the sixth round and the second attempt of fifth round.

Commercial mining allows the private sector to mine coal without regard for end-use restrictions. Private companies will have the option of either gasifying or exporting coal. They can also use it in their own end-of-life plants or sell it in markets.

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