New Delhi/ Bhubaneswar, Nov 27: The Ministry of Coal has successfully concluded the auction of three coal blocks in Jharkhand and Odisha under the 13th round of commercial coal mine auctions. These blocks are expected to draw a capital investment of approximately Rs 7,350 crore, according to an official statement issued on Wednesday.
The three coal blocks, located in Jharkhand and Odisha, are projected to generate annual revenue of around Rs 4,620.69 crore and create employment opportunities for 66,248 people.
Damodar Valley Corporation emerged as the highest bidder for the three blocks: Pirpainti Barahat and Dhulia North in Jharkhand, and Mandakini-B in Odisha.
The blocks, which have been fully explored, collectively contain geological reserves of about 3,306.58 million tonnes of coal. They are also set to have a Peak Rated Capacity (PRC) of 49 million tonnes per annum (MTPA).
Since the launch of commercial coal mining in 2020, a total of 136 coal blocks, with a combined production capacity of 325.04 MTPA, have been successfully auctioned. Once operational, these blocks will significantly boost domestic coal production and support India’s goal of becoming self-reliant in the coal sector. Overall, these auctions are expected to generate an annual revenue of Rs 43,330 crore, mobilise capital investments worth Rs 48,756 crore, and create approximately 4,39,447 jobs across coal-bearing regions.
The 13th round of auctions, which began on August 21, saw forward auctions conducted between November 20 and November 25. This round included both fully and partially explored blocks and introduced reforms, such as incentives for early production and updated penalties for delays.
As part of ongoing coal sector reforms, the government has shifted from a restrictive model to a more competitive bidding process for coal blocks. This includes permitting the commercial sale of coal, opening the sector to private players. The auction-based model, introduced in 2014, initially allowed private sector participation but was limited to captive use. Since 2020, the government has expanded the model to allow commercial coal mining by private entities.
The coal block auctions are held in a two-stage online bidding process, consisting of technical screening followed by submission of competitive price offers. The final stage sees the submission of improved price offers, ensuring a competitive auction process.
