The government is planning to auction 62 coal blocks for commercial mining next week. The newly-appointed coal minister, G. Kishan Reddy, has emphasized the importance of transparency and revenue maximization in this process. These blocks will be offered without end-user restrictions, allowing the coal to be sold in the free market by the allocatee.
Commercial coal block auctions began in 2020, and in nine rounds, 107 coal blocks with 256 million tonnes of peak rated capacity have been auctioned. Currently, 11 commercial coal blocks are operational, with 17.5 million tonnes of coal produced from these blocks in the last financial year.
To facilitate the auction process, the ministry of coal has developed a coal block portal on PM Gatishakti National Master Plan. The ministry has set a production target of 186.63 million tonnes for FY25 from captive and commercial coal mines, with plans to increase production to 225.69 million tonnes in FY26 and eventually reach 383.56 million tonnes by FY30.
Asset monetization through these auctions is a key focus for the coal ministry, with a target of ?54,721 crore for FY25. This will be the first round of auctions since Reddy took over as the minister. In addition to the coal ministry, Reddy has also been allocated the ministry of mines, where he is focusing on automation, innovation, sustainability, and advanced technologies to make India self-reliant in the mining sector.
The meeting with senior officials of the ministry, CPSEs, and attached offices discussed the achievements and long-term plans of the mines ministry. The emphasis was on utilizing advanced technologies to enhance efficiency and self-reliance in the mining sector.
Overall, the upcoming auction of 62 coal blocks represents a significant opportunity for both the government and potential bidders in the coal mining industry. The focus on transparency, revenue maximization, and asset monetization underscores the government’s commitment to driving growth and efficiency in the sector. With the development of the coal block portal and ambitious production targets, the government is setting the stage for increased activity and investment in the coal mining industry.
