Coal ministry signs production agreements for six auctioned coal mines

Six mines with reserves of 1,504 million tonnes are expected to attract Rs 1,743 crore in capital investment, while the 16th auction round offers 25 coal blocks

The coal ministry on Thursday signed Coal Mine Development and Production Agreements (CMDPAs) with the successful bidders of six coal mines auctioned earlier in commercial rounds. The ministry also launched the 16th round of commercial coal mine auctions.

The CMDPAs were executed for Tara (Revised), Margo West, Margo East, Mandla South, Dongeri Tal-II and Dip Side of PKoC, and the successful bidders include CG Syn-Gas & Chemicals, Jharkhand Exploration & Mining Corporation, Qube Commercial, Gallant Ispat and The Singareni Collieries.

The six mines have geological reserves of 1,504 million tonnes and a combined peak rated capacity of 11.62 MTPA. Once operational, they are expected to generate annual revenue of Rs 1,984 crore, attract capital investment of Rs 1,743 crore and create 15,700 employment opportunities.

The 16th round offers 25 coal blocks, comprising 21 fully explored and four partially explored mines, across nine coal-bearing states — Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana and West Bengal.

Of these, six coal mines are offered under the Coal Mines (Special Provisions) Act (CMSP) and 19 under the Mines and Minerals (Development and Regulation) Act (MMDR). "The blocks are open to experienced mining companies, new entrants and technology-driven enterprises under the liberal commercial coal mining framework, which provides for no end-use restrictions, 100 percent FDI through the automatic route and low upfront payments adjustable against future revenue share," the ministry said.

The government has so far auctioned 147 coal mines with cumulative expected annual revenue of over Rs 47,500 crore and projected capital investment of more than Rs 55,000 crore across nine coal-bearing states.