Govt starts auction for 27 coal mines

Ministry of Coal has started the process for auctioning 27 coal mines and allotment of 15 coal mines to Central and State PSUs

August 5, 2019

Ministry of Coal has started the process of auctioning 27 coal mines and allotment of 15 coal mines to Central PSU and State PSUs

Government is auctioning 21 coal mines for ‘End Use Non Regulated Sector’ and six coking coal mines for ‘End Use Iron & Steel’

In case of allotment, five coal mines have been allocated for the power sector, nine for sale of coal and one for iron and steel sector

India is the world’s third largest producer of coal with production reported at 676.5 million tonnes during the fiscal 2017-18

The Government of India is auctioning 21 coal mines for “end use non-regulated sector,” and six coking coal mines for “end use iron and steel.” From the allotment, five coal mines will be allocated for the power sector, nine for sale of coal and one for the iron and steel sector. At peak rated capacity (PRC), these 42 coal mines, when combined with the 15 coal mines allocated to Central and State PSUs, will produce about 70 million tonnes per annum (MTPA). 

India is the world’s third-largest producer of coal with production reported at 676.5 million tonnes during the financial year 2017-18. Coal-based power generation capacity in India currently stands at 194.5 GW – over 54 per cent of total national generation capacity. The government is making provisions to push it to 330-441 GW by 2040. Around 86% of India’s thermal power generation is backed by coal, a key factor given India is the fourth largest power electricity in the world. 

India is also looking at partnerships with other nations to improve coal-based power supply within the country. Earlier this year India signed an agreement with Poland to explore innovation in the field of coal mining and clean coal technology. While the two countries have a Joint Coal Working Group, this deal is expected to strengthen the partnership further. Such deals are critical at a time when numerous policies have been undertaken in India to ensure nationwide electrification.