Jindal Steel and Power Ltd (JSPL) has emerged as one of the key winners in the 11th round of India’s commercial coal auction, securing significant coal blocks along with other industry players. The auction, which kicked off in December 2024, saw intense competition among 27 blocks available for sale, ultimately resulting in 12 blocks being successfully bid on by a variety of companies. Among the successful bidders, JSPL, along with its subsidiary Jindal Power, has secured several vital coal mines, reinforcing their dominance in the sector.
The Ministry of Coal had launched this round of auctions with the aim to address the growing demand for coal and improve the supply chain for India’s energy needs.
The auction process saw 12 fully explored and partially explored coal mines being sold, with a collective geological reserve amounting to approximately 5,759.23 million tonnes. The total Peak Rated Capacity (PRC) of these blocks stands at 15.46 million tonnes per annum (MTPA), excluding partially explored mines.The auction process, which is designed to encourage transparency and ensure competitive bidding, achieved an impressive average revenue share of 36.27 percent. This figure reflects the strong and sustained interest in India’s coal sector, which is essential for driving the country’s energy and industrial growth. The total projected revenue generated from these 12 coal mines is estimated to be ₹3,330 crore annually, with an expected capital investment of ₹2,319 crore.In addition to bolstering the coal sector’s supply capacity, the auction is also expected to generate significant employment opportunities. Approximately 20,902 jobs are expected to be created by the newly auctioned coal mines, further driving India’s economic growth, particularly in coal-producing regions. Since the introduction of commercial coal mining in 2020, India has auctioned 125 coal mines, contributing to a total production capacity of 273.06 MTPA.
The coal auction reflects the government’s focus on the long-term sustainability of the coal sector by ensuring the smooth supply of coal, which plays a pivotal role in sectors like steel, power, and cement. Despite challenges such as environmental concerns and shifting global energy dynamics, coal remains a cornerstone of India’s industrial progress.
The auction also highlights the growing interest from both public and private players in securing coal mines to meet the country’s energy demands. Coal India’s subsidiary, Western Coalfields Ltd, was another major winner in the auction. Meanwhile, companies like Jharkhand Exploration and Mining Corporation, Rungta Sons, and Pra Nuravi Coal Mining also successfully secured coal blocks, indicating a broad industry interest in India’s coal sector.The commercial coal auctions are part of a broader effort to privatize coal mining in India, reducing dependence on state-run companies and allowing for increased competition and efficiency in coal production. The government’s commitment to reforming the coal sector, along with these auction results, signals that India is on a path towards enhancing its domestic energy security and creating more opportunities for growth in related industries.
With successful bids from prominent players such as JSPL and other companies, the 11th round of coal auctions strengthens the outlook for India’s coal and energy sectors, highlighting the ongoing transformation of the country’s energy infrastructure. The government continues to focus on creating an enabling environment for private sector participation while balancing the need for sustainable development and energy security. As India’s industrial landscape evolves, coal remains a vital part of the nation’s energy mix, powering growth and development across sectors.
