Coal Ministry launches biggest ever coal mine auction of 141 mines

4 Nov 2022 , 08:31 AM

Union Finance Minister Nirmala Sitharaman said that a fast growing economy like India needs greater investment in coal production and gasification projects. Globally, energy prices especially that of gas is going up. Launching the 6th round of coal mine auction of the Ministry of Coal here today, the Finance Minister highlighted that India is at present the best investment destination in the world.

The Minister pointed out that due to policy consistency and transparent process of the present Government, coal imports for power sector has come down by 41%. The finance minister said that twelve states are to benefit directly from today’s auctioning of 141 coal mines.

Complementing the Coal Ministry for the recent initiatives to unlock the coal sector, FM Sitharaman said that mining sector reforms are providing the right fillip to our fast growing economy. Finance Ministry will be extending all help for coal gasification and incentives in commercial mining, she further added.

Addressing the function Coal, Mines & Parliamentary Affairs minister Pralhad Joshi said, “Coal Ministry is exploring alternative methodology for enhanced use of coal.  Minister Joshi said that finance ministry has extended Rs6000 crore incentive for coal gasification and Rs250 crore for exploration process. During the biggest auction undertaken so far, today 141 mines pertaining to eleven states have been auctioned.”

Joshi further added that previously auctioned mines have started production and hoped that 10 to 15 million ton coal will be produced from new mines by next year.  As per the review done the other day, the Ministry of Coal is anticipating 900  million ton  coal production this year.

133 coal mines were put up for auction in the 6th round of commercial auctions, out of which 71 are new coal mines and 62 coal mines are rolling over from earlier tranches of commercial auctions. Additionally, 8 coal mines under 2nd attempt of 5th round of commercial auctions were included for which single bids were received in the first attempt. With the launch of this auction tranche, the Ministry of Coal re-affirms its commitment to attain self-sufficiency in the area of thermal coal.

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