India Boosts Coal Production with DVC Pacts for 3 Blocks, 49 MTPA Capacity

These blocks were successfully auctioned under the 13th round of commercial coal mining auctions.

The execution of these agreements represents a significant milestone in India's journey towards self-reliance in the coal sector. All three coal blocks are fully explored and together account for a cumulative Peak Rated Capacity (PRC) of 49 million tonnes per annum (MTPA), underscoring their strategic importance in meeting the country's growing energy requirements, the statement said.

The projects are envisaged to generate an estimated annual revenue of Rs 4,621 crore, while attracting a capital investment of approximately Rs 7,350 crore, thereby contributing substantially to economic activity and industrial growth, the statement said.

In addition to strengthening energy availability, the development of these coal blocks is expected to deliver significant socio-economic benefits. The three projects are projected to create around 66,248 direct and indirect employment opportunities, fostering livelihood generation and regional development in the coal-bearing areas.

In 2025, the Ministry of Coal launched the 13th round of commercial coal block auctions in August and successfully auctioned seven coal blocks. It also issued vesting orders for eight more blocks earlier in October. The 13th round of auctions offers both fully and partially explored blocks, and includes reforms like incentives for early production and updated penalties for delays.

As part of the coal sector reforms, the government has moved from an earlier restrictive model to granting coal mining blocks pursuant to a competitive bidding process, and from prescribing specific end-use to permitting commercial sale of coal. The auction-based regime introduced in 2014 allowed private sector participation, however it was limited to captive usage in own end-use plants. Now, the sector has been opened up for commercial coal mining by private players in 2020.

Commercial coal block auctions are conducted in a two-stage online bidding process, which involves technical screening and submission of competitive initial price offers in the first stage, and a second and final stage where better price offers are intended to be received.

- IANS