The Coal Ministry has signed agreements with the successful bidders of six coal mines, marking a significant step in the commercial mining sector’s development – EQ
In Short : The Coal Ministry has signed agreements with successful bidders for six coal mines for commercial mining purposes. This signifies progress in India’s coal sector, as it opens up opportunities for private sector participation and investments in coal mining. These agreements aim to enhance coal production, promote efficient mining practices, and contribute to India’s energy security while adhering to regulatory and environmental standards.
In Detail : Rs.1050 crore invest anticipated; Likely to create 9464 Employment Opportunities
91 Mines Auctioned Successfully under Commercial Coal mine Auction So far
The Ministry of Coal has executed agreements with six successful bidders of coal mines under Commercial Mining in 7th round of auctions here today. The momentous event marked the successful auction of 91 coal mines ever since the inception of Commercial Coal Mining in the country by the Prime Minister Shri Narendra Modi in 2020. Out of these six coal mines, four mines have undergone partial exploration and the other two are fully explored.
The mines for which these agreements have been executed are Meenakshi West, North Dhadu (Eastern Part), North Dhadu (Western Part), Pathora East, Pathora West and Sherband. The Successful Bidders encompasses notable entities such Hindalco Industries Limited, NTPC Mining Limited, NLC India Limited, Shri Bajrang Power & Ispat Limited and Nilkanth Mining Limited.
Furthermore, the estimated total annual revenue generation from these six coal mines stands at approximately Rs. 787.59 crore, based on production at an aggregated Peak Rate Capacity (PRC) level of ~7.00 metric tonne per annum (MTPA). Once these mines are fully operational, they are poised to generate employment for 9,464 persons directly and indirectly. A substantial investment of Rs. 1,050 Crore has been earmarked for the operationalization of these coal mines. The revenue-sharing percentages for the successful bidders in these six coal mines range from 6% to 43.75%, with an average revenue share of 23.71%.
Coal Ministry’s meticulous and transparent auction process is a significant step toward fostering productive and progressive development in the coal mining sector.
SBI Capital Markets Limited, an exclusive Transaction Advisor to the Ministry of Coal for the Commercial Coal Mine auction, played a pivotal role in formulating the methodology and ensuring the successful execution of the auction process.
