Representative image of a coal mine.
Credit: Pixabay Photo
The Centre on Friday entered into pacts with six bidders, including Hindalco Industries and NLC India Ltd, which bagged coal blocks under the seventh round of coal mines auction.
The government had launched the seventh round of auctions for commercial mining of coal blocks, putting 106 mines under the hammer.
In a statement, the coal ministry said that successful bidders encompass entities such Hindalco Industries Ltd, NTPC Mining Ltd, NLC India Ltd, Shri Bajrang Power & Ispat Limited and Nilkanth Mining Ltd.
The mines for which these agreements have been executed are Meenakshi West, North Dhadu (Eastern Part), North Dhadu (Western Part), Pathora East, Pathora West and Sherband.
Of the said blocks, four have undergone partial exploration and the other two are fully explored.
The estimated total revenue generation annually from these blocks stands at approximately Rs 787.59 crore, based on production at an aggregated peak rate capacity (PRC) level of seven metric tonne per annum (MTPA).
An investment of Rs 1,050 crore has been earmarked for the operationalisation of these coal mines. The revenue-sharing percentages for the successful bidders in these six coal mines range from six per cent to 43.75 per cent, with an average revenue share of 23.71 per cent.
Prime Minister Narendra Modi had in 2020 launched the auction process for 41 coal blocks for commercial mining, a move that opened India's coal sector for private players.