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Centre completes auction of 3 coal blocks, to yield annual revenue of Rs 2,710 crore
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The Coal Ministry executed the mining agreements for three coal blocks with successful bidders on Friday. The event marked the successful auctions of 104 coal blocks till date, since the launch of the new commercial coal mining policy in the country by Prime Minister Narendra Modi.
The total annual revenue generation from these 3 coal blocks under commercial auctions is estimated at around Rs 2,709.95 crore considering production at an aggregated Peak Rate Capacity level of 27.00 MTPA, according to a Coal Ministry statement.
Once these blocks are fully operational, they are expected to generate employment for 36,504 persons directly and indirectly and a total investment of Rs 4,050 crore will be expended to operationalise these coal blocks. With the execution of CMDPAs for these 3 coal blocks, CMDPAs have been signed for 101 coal mines auctioned under commercial coal auctions, the statement said.
All these three coal blocks come under the fully explored category with proven coal reserves. The blocks for which these Coal Block Production and Development Agreements have been executed are Meenakshi and Rampia & Dip Side of Rampia coal blocks. The successful bidders include Hindalco Industries Ltd and Jhar Mineral Resources Private Ltd, respectively, according to an official statement.
Coal Secretary Vikram Dev Dutt handed over the agreements to the successful bidders of the three coal blocks. He assured them of full support and cooperation from the Ministry to ensure the smooth operationalisation of the blocks. Dutt emphasised the Ministry’s commitment to facilitating the successful implementation of coal mining projects, which are expected to contribute significantly to India’s energy security and economic growth.
Further, in the ongoing e-auction of the 10th round, the second day witnessed the auction of 2 coal blocks. Both the coal blocks are fully explored coal blocks. The total geological reserves for these 2 coal blocks are 180.26 million tonnes and the peak rated capacity (PRC) is 2.10 MTPA.
These two coal blocks, upon operationalisation, will generate annual revenue of around Rs. 339.06 crore calculated at PRC of these coal blocks. These blocks will attract capital investment of Rs 315 crore and will provide employment to 2,839 people, the official statement added.
