Kishan to launch auction of 60 coal blocks in city tomorrow

Hyderabad: The Union Minister of Coal and Mines G Kishan Reddy will launch the next tranche of coal blocks auction here on June 21. Of these, two blocks from Telangana, one non-coking and one fully-explored, will be part of the auction. The ministry's initiative comes as part of the 100-day mission to enhance domestic coal production and ensure the nation's energy security.

Reddy will launch the 10th round of commercial coal-mining auctions, which will be attended by Minister of State for Coal and Mines Satish Chandra Dubey, Deputy Chief Minister Mallu Bhatti Vikramarka, and Secretary, Ministry of Coal Amrit Lal Meena.

According to a ministry communique, this initiative is poised to foster transparency, competitiveness, and sustainability in the coal sector. "The auction includes 60 coal blocks, encompassing a diverse range of coking and non-coking coal mines. Strategically located across different States/regions, these blocks will support regional economic development and employment generation." The blocks going for auction are in Bihar, Chhattisgarh, Jharkhand, MP, Maharashtra, Odisha, Telangana, and West Bengal.

The launch of the auction represents a pivotal moment in the mission to achieve self-reliance in the sector. The Centre is unlocking the vast coal reserves to drive economic growth and energy security by opening more blocks for transparent and competitive bidding. It is committed to sustainable mining practices that balance economic development with environmental stewardship, the ministry said.

A total of 60 coal mines will be offered in the upcoming round. Among them, 24 are fully explored, while 36 are partially explored. Additionally, "five mines are being offered under the second attempt of round nine of commercial coal. Of these, four are fully explored, and one is partially explored. Also, two coal mines are being offered under the second attempt of round eight. Of these, one is fully explored, and one is partially explored," it added.

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 amendment of mineral laws has been instrumental in unlocking the sector, providing an equitable playing field for both public and private players, and allowing auctions for various purposes, including their own consumption and sale.

For ease of doing business, the ministry has conceptualised a single window clearance system (SWCS) portal to create a platform to obtain various clearances for the early operationalisation of mines, ultimately resulting in the augmentation of production in the country through a single gateway. These reforms serve as pillars of progress and resilience in the sector.

The upcoming commercial coal mine auction holds the potential to propel economic growth, generate employment opportunities, strengthen energy security, and contribute to sustainable development, it said.