Western Coalfields, JSPL bag coal blocks in 11th round of commercial auctions

Ten companies, including Western Coalfields (WCL) and Jindal Steel and Power (JSPL), has secured coal blocks in the 11^th round of commercial mine auctions.

On December 5, 2024, Coal Ministry launched the 11th round of commercial coal mine auctions under which it offered a total of 27 blocks.

In the forward auctions, a total of 12 coal mines were successfully auctioned, comprising eight fully explored mines and four partially explored coal mines.

Besides the Coal India (CIL) subsidiary and JSPL, the other successful bidders include Jharkhand Exploration and Mining Corporation, Rungta Sons, Jindal Power, New Era Cleantech Solution and Innovative Mines and Minerals.

“These 12 mines collectively hold a geological reserve of around 5,759.23 million tonnes (mt), with a cumulative Peak Rated Capacity (PRC) of 15.46 mt per annum (mtpa), excluding partially explored mines,” the Ministry said.

The auctions witnessed intense competition, achieving an impressive average revenue share of 36.27 per cent, reflecting the sustained interest of industries in India’s coal sector and the Ministry’s commitment to providing a stable and transparent policy framework, it added.

Expected revenue

The newly auctioned mines are projected to generate an annual revenue of around ₹3,330 crore (excluding partially explored mines) and attract a capital investment of about ₹2,319 crore.

Additionally, these mines are expected to create 20,902 employment opportunities, significantly contributing to economic development in coal-bearing regions.

Since the inception of commercial coal mining in 2020, the Ministry has successfully auctioned 125 coal mines, with a combined production capacity of 273.06 mtpa.

Once operationalised, these mines will play a crucial role in enhancing domestic coal production and strengthening India’s energy security. Collectively, these mines are expected to generate an annual revenue of ₹38,767 crore, attract a capital investment of ₹40,960 crore, and create employment opportunities for approximately 4,69,170 people.

Production from commercial coal mines have shown significant growth. Production of coal in FY24 was 12.55 mt and it has increased in FY25 to 22.35 mt (till date) clocking a growth of around 78.14 per cent.