JSPL, Jindal Power Among Winners in Latest Coal Mine Auctions

The 11th round of commercial coal mine auctions has concluded successfully, with strong industry participation highlighting continued interest in India’s coal sector.

A total of 12 coal mines were auctioned, achieving an impressive average revenue share of 36.27%, as per the data from the ministry. These mines are expected to generate an annual revenue of approximately ₹3,330 crore and create around 20,902 jobs.

Key Players in the Auction

Several leading companies secured coal blocks in this round, including Jindal Steel and Power Ltd (JSPL), Jindal Power, and Western Coalfields Ltd, a subsidiary of Coal India.

Other successful bidders included Jharkhand Exploration and Mining Corporation, Innovative Mines and Minerals, Singhal Business, Pra Nuravi Coal Mining, Mineware Advisors, Rungta Sons, and New Era Cleantech Solution.

Overview of the Auction

The 11th round of commercial coal mine auctions was launched in December 2024, with 27 blocks put up for sale. Of these, 12 coal mines were successfully auctioned, comprising eight fully explored mines and four partially explored mines.

According to the Ministry of Coal, these mines collectively hold geological reserves of approximately 5,759.23 million tonnes, with a Peak Rated Capacity (PRC) of 15.46 million tonnes per annum (MTPA), excluding the partially explored mines.

Economic and Employment Impact

The auctions reflect the government’s commitment to a transparent and stable policy framework for commercial coal mining. The total projected capital investment in these mines is around ₹2,319 crore, further reinforcing industrial growth. The development of these mines is also set to create employment opportunities for nearly 20,902 people, providing a boost to local economies.

Share Price Performance

Jindal Steel & Power’s share price is ₹911.35, down from its previous close of ₹922.75, while Coal India Limited is at ₹399.25, lower than its previous close of ₹406 at 11:45 AM on the NSE.

Conclusion

The success of the 11th round of commercial coal auctions underscores the sustained industry interest in India’s coal sector.

With substantial economic contributions and job creation, these auctions play a crucial role in strengthening the country’s energy security and industrial growth. As India continues to expand its commercial coal mining initiatives, the sector is poised for further development and investment.

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