On Thursday, the Coal Ministry initiated the 12th round of commercial coal mine auctions, unveiling 25 coal mines available for bidding. This latest auction includes two significant lignite reserves, which are essential for meeting the country’s varied energy needs. With a mix of fully and partially explored mines, this auction presents both immediate opportunities for development and prospects for future growth.
Diverse Auction Offerings
The latest auction features a total of 25 coal mines, categorized as follows:
- Fully explored mines: 13
- Partially explored mines: 12
Among these, seven mines are being auctioned under the Coal Mines (Special Provisions) Act of 2015, while the remaining 18 fall under the Mines and Minerals (Development and Regulation) Act of 1957. Additionally, the ministry is reintroducing three partially explored coal mines from the previous round, aimed at attracting investment and boosting domestic production.
Previous Auction Success
Back in December 2024, the 11th round of coal mine auctions proved to be a resounding success, with 12 coal mines sold—eight fully explored and four partially explored. This round saw fierce competition, achieving an average revenue share of 36.27%, the highest recorded to date in commercial coal mine auctions. G. Kishan Reddy, the Coal and Mines Minister, emphasized the government’s commitment to working with state authorities to streamline approvals, ensuring a smoother process for operators.
Significant Geological Reserves
The 12 mines offered in the latest auction collectively boast an impressive geological reserve of approximately 5,759.23 million tonnes and a peak rated capacity of 15.46 million tonnes per annum (MTPA), excluding the partially explored mines. The projected financial impact of the 11th round is substantial, with anticipated annual revenues of ₹3,330 crore and a capital investment influx of around ₹2,319 crore.
Emerging Leaders in Mining
Several notable companies emerged victorious in the 11th tranche of auctions, including:
- Jindal Steel and Power
- Western Coalfields
- Rungta Sons
- Mineware Advisors
- Jharkhand Exploration and Mining Corporation
These companies are set to play pivotal roles in enhancing coal supply and production in the nation.
Rising Coal Production
Since the commencement of commercial coal mining in 2020, the Coal Ministry has successfully auctioned a total of 125 coal mines, achieving a combined production capacity of 273.06 million tonnes per year. This initiative is expected to generate an impressive annual revenue of ₹38,767 crore and attract a capital investment of ₹40,960 crore. In the current fiscal year 2025, production from these commercial mines has surged to 22.35 million tonnes, reflecting a remarkable growth of 78.14% compared to 12.55 million tonnes in fiscal year 2024.
The government’s ongoing efforts to enhance domestic coal production not only aim to meet rising energy demands but also to reduce reliance on imports, marking a significant step towards energy independence.
