India Issues Vesting Orders for 7 Coal Blocks Under Commercial Auctions

In a significant development for India’s coal sector, the Ministry of Coal has issued vesting orders for seven coal blocks under the commercial coal block auctions. This move is expected to bolster the country’s energy production capacity and generate substantial economic benefits

Overview of the Allocated Coal Blocks

The seven coal blocks for which vesting orders have been issued are:

• Dahegaon Makardhokra IV

• Saradhapur Jalatap East

• Banai & Bhalumunda

• Sahapur East

• Seregarha

• Vijay Central

Among these, five blocks are fully explored, and two are partially explored. Collectively, they possess a peak rated capacity (PRC) of 13.07 million tonnes per annum (MTPA) and geological reserves totaling approximately 5,063 million tonnes.

Economic and Employment Impact

The allocation of these coal blocks is projected to generate an annual revenue of ₹1,327 crore and attract capital investments amounting to ₹2,455 crore. Furthermore, the development and operation of these mines are expected to create employment opportunities for approximately 18,522 individuals, both directly and indirectly.

With this latest allocation, the total number of coal blocks vested or allocated under commercial auctions has reached 116, with a cumulative PRC of 261.304 MTPA. This expansion is anticipated to contribute to an annual revenue generation of around ₹37,000 crore and provide employment to about 3.53 lakh people across the country.

Notable Milestone for Western Coalfields Limited

A significant highlight of this development is the successful acquisition of the Dahegaon Makardhokra IV coal block by Western Coalfields Limited (WCL), a subsidiary of Coal India Limited. This marks the first time WCL has secured a coal block through the commercial auction process, underscoring the government’s commitment to fostering equal opportunities and a level playing field in the coal sector.

The Dahegaon Makardhokra IV block, located near WCL’s existing operations in the Umrer Coalfield, holds approximately 120 million tonnes of geological coal reserves. The acquisition is expected to enhance coal production, improve resource utilization, and contribute significantly to meeting India’s escalating energy needs.

The issuance of vesting orders for these seven coal blocks represents a strategic move by the Ministry of Coal to augment domestic coal production, attract substantial investments, and generate employment opportunities. As India continues to balance its energy requirements with sustainable practices, such developments play a crucial role in shaping the nation’s energy landscape.