Union Minister G Kishan Reddy to Launch 10th Round of Coal Block Auction in India

New Delhi, India – In an effort to boost coal production, Union Minister of Coal and Mines G Kishan Reddy will launch the 10th round of the commercial coal block auction on Friday. This round will offer 60 coal blocks for auction.

Details of the Auction

The coal blocks are located in Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal. Odisha will have the highest number of blocks with 16, followed by Chhattisgarh and Madhya Pradesh with 15 each.

Previous Auctions and Production

Since the launch of the commercial coal block auction by the Prime Minister in 2020, 107 coal blocks have been successfully auctioned in nine rounds. So far, 11 commercial coal blocks have become operational. Last year, these mines produced 147 million tonnes (MT) of coal, making up 15% of the country’s total coal production.

Private Sector Involvement

Coal India Limited (CIL) has awarded 23 coal mines to private sector bidders under a revenue-sharing model. These mines have a cumulative peak rated capacity of 34.14 million tonnes per year and total extractable reserves estimated at 635 million tonnes. The minimum revenue to be shared is 4%, and the contract period is up to 25 years.

Environmental and Economic Benefits

This initiative aims to conserve resources, substitute imported coal, and provide livelihoods to local communities. The existing mining infrastructure will be used, preventing land degradation. Foreign bidders can also participate as part of a consortium.

Future Plans

CIL is identifying additional mines to attract wider participation with relaxed bid norms. For coal sold exclusively for coal gasification or liquefaction, 50% of the contracted revenue share will be provided to the operator.