Govt successfully bids out 29 coal blocks for commercial mining

The 29 coal blocks successfully offered by the government for commercial mining are expected to increase average dry fuel production by 7% over the next two years, with a combined peak capacity (PRC) of about 91 million tonnes.

According to sources, the 91 million tonnes of PRC of 29 coal blocks offered represents an additional 7% of the current national average PRC of coal reserves.

According to sources, the Ministry of Coal auctioned off 29 reserves for commercial mining last month, and all of them were offered. The final of the 29 mines was successfully offered earlier in the day, they added.

With all 29 mines expected to begin production by 2024-25, or within the next two years, the government hopes that all of these coal mines together will increase overall national average production by 7%.

On November 3, 2022, the ministry launched an auction of coal reserves for commercial mining in the sixth round and the second attempt in the fifth round. Forward auctions for these mines began on February 27. PRC refers to the maximum production capacity of a coal mine, or the maximum amount of coal that can be extracted from it annually.

Commercial mining allows the private sector to mine coal commercially without imposing end-use restrictions. Private companies will have the opportunity to gasify or export the coal. They can also use it in their own end-use factories or sell it in the markets.