Team Blitz India
NEW DELHI: The Government will launch the ninth round of commercial coal mine auctions on December 20, the Ministry of Coal announced on December 18.
A total of 26 coal mines will be offered in the upcoming round of these three mines will be offered under the Coal Mines (Special Provisions) Act 2015 (CMSP), whilethe 23 mines under theMines and Minerals (Development and Regulation) (MMDR) Act 1957. Of the 26 coal mines to be launched for auctions, 12 are in Madhya Pradesh, eight in Chhattisgarh, five in Jharkhand, and one in Telangana.
India will continue to rely on coal for power generation for at least another decade.To meet the growing demand, the Government has revised its plan to increase the country’s coal-fired power generation capacityto about 80 GW by 2030 instead of 51 GW as was planned earlier. This means more coal needs to be mined for increased supply to thermal power
“Unlike previous commercial coal mine auctions, there are no restrictions on the sale or utilisation of coal. Notably, eligibility criteria have been eliminated, removing any technical or financial barriers to participation. Also, a strategic shift from the notified price to the National Coal Index ensures transparency and fairness, establishing a market-driven pricing mechanism,” the Ministry said.
The upcoming ninth round of commercial coal auctions is poised to enhance the participation of more private players in the coal sector, fostering competition, efficiency, innovation and contributing to sustainable development.
The amendment of mineral laws has been instrumental in unlocking the coal sector, providing a level playing field for both public and private sector players and allowing auctions for various purposes, including own consumption and sale.
