Coal Auctions: Singareni Interests Safe, Says Kishan Reddy

Speaking at the launch ceremony of the 10th tranche of commercial coal mine auctions, Kishan Reddy said: “The government of India holds 49 per cent in Singareni. It is our responsibility as much as it is of the Telangana government to protect and nurture Singareni. We will work in that direction and take it to the levels of Coal India. Coal mine auctions benefit the respective state governments directly and not the government of India. As a son of Telangana, I will ensure that Singareni interests are protected,” he said at the launch, which was his first official event in Hyderabad after he took charge as the Union minister in the third tenure of the Narendra Modi government.

A stakeholder meeting will be held shortly to prepare a comprehensive plan to address issues plaguing Singareni. Among others, production at Naini coal block in Odisha, allotted to Singareni a few years ago, has not started so far. The government of India will talk with the Odisha government to expedite the process and help Singareni start production at the earliest. Output from this block could be about 15 per cent of what Singareni is producing, said Kishan Reddy.

The coal auctions will also open up direct and indirect employment opportunities, he said, adding that many first-time bidders have evinced interest to be part of the tendering process.

The intense competition reflects the huge demand coal has. Coal is the lifeline of all industries as India’s power sector is predominantly thermal powered. In Telangana, industries for about 10 years have staged protests demanding continuous supply of power. Such shortages have been overcome by the government of India. Coal will play a key role in taking India’s economy
to $5 trillion. The previous rounds of coal auctions have fetched about Rs 38,400 crore, he said.

The coal minister said that the Centre has streamlined the auction process and launched a single window approval system. The bid security amount required has been slashed by 20 per cent. The government has now set a 100 million tonne target under the coal gasification plant. New washeries are also planned. India wants to reduce coal imports and increase domestic production, Kishan Reddy said.

India, the world's second-largest consumer of coal, imported 176 million tonnes of thermal coal in 2023.

In the 10th round of auction, a total of 67 coal mines will go under the hammer in this round. The mines are in Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, West Bengal and Telangana. This includes both fully explored and partially explored and three coking coal mines.

Mines falling under protected areas, wildlife sanctuaries, critical habitats, having forest cover greater than 40 per cent, and heavily built-up areas have been excluded. Sale of tender documents started and details of the mines, auction terms, and timelines can be accessed on MSTC auction platform and the website of the ministry of coal. The auction will be held online through a two-stage process, based on percentage revenue share.

Minister of state for coal and mines Satish Chandra Dubey assured to provide the necessary support to coal block bidders by improving ease of doing business. Coal secretary Amrit Lal Meena emphasised enhancing coal production to meet the rising energy demands without compromising the safety of workers.