Defence Minister Rajnath Singh launched the seventh round of auctions for commercial mining of coal blocks on Wednesday, placing 106 mines up for grabs. There are 61 partially explored blocks and 45 completely explored mines among the total mines offered in the seventh round.
The newest round of auction includes 95 non-coking coal mines, 10 lignite mines, and one coking coal mine.
In his speech, Singh said that coal is considered black gold and that it plays an essential role in the country's economy.
“Our energy consumption has increased in recent years and will continue to increase. And in order to satisfy this demand, we must begin working right away,” he said.
The ongoing auctions of coal blocks, according to Singh, are a move towards energy security.
The MSTC auction platform contains information about the mines, auction conditions, timelines, and so on. According to the coal ministry, the auction will be conducted online in two stages and will be based on a percentage revenue share.
While inviting players to join in the latest round, Coal and Mines Minister Pralhad Joshi stated that the government will provide incentives to players who begin early production from mines.
He also said that coal will continue to be used for the next 40-50 years.
Meanwhile, the Ministry of Coal approved contracts for 28 coal mines that were auctioned off in the sixth round of bidding.
The combined PRC (peak rated capacity) of the 28 coal mines auctioned in the previous round is 74 million tonnes per annum (MTPA) and these mines are anticipated to produce yearly revenue of Rs 14,497 crore based on their PRC.
These mines are anticipated to employ 1 lakh people once they are operational.
Successful bidders in the sixth round of bidding included JSW Cements, Ultratech Cements, Ambuja Cements, and Jindal Power, among others.