According to the Ministry of Coal, the commercial auction of 30 mines has been completed since June 2020 with the auction of two more coal mines at the end of December 2021.
Center’s emphasis on increasing coal production
Union Minister of Coal and Mines Prahlad Joshi has asked Chhattisgarh Chief Minister Bhupesh Baghel to expedite the auction of mineral blocks in line with the recent reforms in the mineral sector. He also said that the production of coal in the state can be increased further with the early resolution of land-related issues. Joshi said in a tweet that he has asked for early resolution of various land related issues related to South Eastern Coalfield Limited in Chhattisgarh.
Government’s emphasis on increasing coal production
According to a statement from the Ministry of Coal, in a meeting with Baghel through video conference, Joshi said that if the land-related issues are resolved soon, then the production of coal from Chhattisgarh can be increased further. Joshi has also requested the Chief Minister to expedite the auction of mineral blocks in line with the recent reforms in the mineral sector. In a separate meeting with senior officials of the Ministry of Coal and Coal India Limited (CIL) to review the status of coal availability in the country, Joshi urged the management to motivate the employees to achieve the annual production targets.
Auction of 30 mines completed by the end of 2021
At the end of December, the Coal Ministry had informed that with the auction of two more coal mines, the commercial auction of 30 mines has been completed so far. According to the Ministry of Coal, a total of 30 mines have been successfully auctioned since the beginning of the first phase in June 2020. Out of this, exploration work has been completed in 23 mines, while exploration work has been partially done in 7 mines. According to the ministry, the auction has indicated good demand in the market. The auction has fetched an average premium of around 27.78% against the floor price of 4% while the total maximum recorded capacity auctioned so far is 63.17 MTPA. It is estimated that the total annual revenue from the mines can be Rs 8158.03 crore, while more than 85 thousand people will get employment from them. According to the ministry, the auction of commercial coal mines has witnessed tough competition and many participants from non-end user category, such as building construction sector i.e. real estate, infrastructure, pharma etc. have also emerged as successful bidders in this auction. , which is a big positive sign, while the mining industry is now expected to bring more efficiency and technological progress after the removal of end-use norms. Due to better response to the auction of mines, the government is trying to auction other mines soon.
(with inputs from PTI)