Coal Ministry auctions six coal mines with anticipated investment of 1,050 crore

8% Increase Coal Production Touches
8% Increase Coal Production Touches

The Ministry of Coal has finalised agreements with six successful bidders in the 7th round of Commercial Mining auctions, a total of 91 coal mines have been successfully auctioned since the inception of Commercial Coal Mining in 2020.

Out of the six coal mines, four have undergone partial exploration, while two are fully explored. The mines include Meenakshi West, North Dhadu (Eastern Part), North Dhadu (Western Part), Pathora East, Pathora West, and Sherband. Notable entities such as Hindalco Industries Limited, NTPC Mining Limited, NLC India Limited, Shri Bajrang Power & Ispat Limited, and Nilkanth Mining Limited are among the successful bidders.

These six coal mines are estimated to generate an annual revenue of approximately Rs. 787.59 crore based on an aggregated Peak Rate Capacity (PRC) of approximately 7.00 metric tonnes per annum (MTPA). Once fully operational, they are expected to create employment opportunities for 9,464 individuals, both directly and indirectly. An investment of Rs. 1,050 Crore has been allocated for the operationalisation of these coal mines. The revenue-sharing percentages for the successful bidders in these mines range from 6% to 43.75%, with an average revenue share of 23.71%.

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SBI Capital Markets Limited, an exclusive Transaction Advisor to the Ministry of Coal for the Commercial Coal Mine auction, played a the role of formulating the methodology and ensuring the successful execution of the auction process.

 

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