India’s coal sector is gearing up for a significant expansion with the upcoming auction of 30 new coal blocks for commercial mining, anticipated to commence by May 10.
The move comes as part of the government’s strategic initiatives to boost domestic coal production and reduce dependency on imports, with the aim of achieving self-reliance and sustainable development in the energy domain. According to a senior government official, the coal ministry has obtained permission from the Election Commission of India to proceed with the auction, coinciding with the commencement of the 2024 general elections. In addition to the 30 new blocks, the auction will also include 50 mines that received limited interest in previous rounds.
The auction process is expected to span over two months, with bids being invited for the various coal blocks. The government’s overarching objective is to augment coal production capacity and curtail the need for imports, thereby enhancing energy security and fostering economic growth. In the fiscal year 2023-24, captive and commercial coal mines collectively produced approximately 147 million tonnes of coal, marking a significant increase of nearly 48% compared to previous years. With production forecasted to exceed 170 million tonnes in the current fiscal year, the coal ministry has set an ambitious target of around 1.5 billion tonnes by the fiscal year 2030.
Recent auction rounds have witnessed enthusiastic participation from industry players, with notable bids being placed for coal mines across various states. In the last forward auction held in March, companies like JK Cement, Rungta Sons Pvt. Ltd, and Bull Mining secured rights to lucrative coal blocks, underscoring the growing interest in India’s coal sector. Furthermore, the coal ministry is actively promoting the adoption of domestic fuel-based technologies and design among power plants currently reliant on imported coal. Minister Pralhad Joshi has articulated the ministry’s vision of achieving zero thermal coal imports by the fiscal year 2025-26, signalling a decisive shift towards indigenous resources and energy self-sufficiency. As India embarks on this trajectory of coal sector expansion and revitalisation, stakeholders remain optimistic about the sector’s potential to drive economic growth, foster innovation, and ensure energy security for the nation’s burgeoning population.
