NLC India Expands Operations With Coal Auction Win
NLC India Limited has secured its first commercial coal mine through the Ministry of Coal’s competitive auction process, signing a Coal Mining Agreement for the North Dhadu Western Part Coal Mine. The block contains over 110 million tonnes of extractable coal with a rated capacity of 3 million tonnes per annum under the Mine Developer and Operator (MDO) model, marking a significant expansion of NLC India’s energy and resource portfolio.
This acquisition marks the company’s entry into commercial coal mining, complementing its existing thermal power and lignite operations. Located in Jharkhand, the North Dhadu Western Part block is expected to provide a reliable domestic coal supply, enhancing energy security while supporting urban and industrial infrastructure growth across India.A senior company official noted that winning the mine aligns with NLC India’s long-term growth strategy, providing operational visibility and diversified revenue streams. “This milestone underscores our commitment to expanding domestic coal production and strengthening our contribution to India’s energy ecosystem,” the official said.Industry experts highlight that commercial mining through the MDO model allows efficient extraction and operational management, reducing upfront capital requirements while ensuring steady output. Such initiatives also reflect India’s broader strategy to promote public sector participation in commercially viable coal projects and reduce dependence on imports.
The North Dhadu Western Part project complements NLC India’s ongoing operations, including the Pachwara South Open Cast Project in Jharkhand, which has extractable reserves of over 260 million tonnes and supplies the 3×660 MW Ghatampur Thermal Power Plant in Uttar Pradesh. Together, these projects position NLC India as a more integrated coal and energy provider, capable of supporting the country’s growing urban and industrial energy demands sustainably.Market analysts view the acquisition as a positive step in strengthening the company’s resource base and operational capabilities. The move is expected to enhance investor confidence, align with government policies promoting domestic coal production, and support infrastructure expansion by ensuring a stable coal supply for energy and industrial needs.
As India continues its urbanisation and industrial growth trajectory, NLC India’s entry into commercial mining is seen as a critical step in balancing energy security with efficient resource management and sustainable industrial practices.
