In a significant development for India's energy and industrial sectors, Sarda Energy and Minerals Ltd and S M Steels and Power Ltd have successfully won two coal mine blocks in the ongoing 10th round of the government’s commercial coal mines auction. The auctions, which are part of India’s efforts to promote private sector participation in coal mining, have seen competitive bids for a series of coal mines across the country. Sarda Energy secured a coal mine in Chhattisgarh, while S M Steels won a block in Jharkhand, both of which are expected to contribute significantly to the country's energy and industrial needs.
Sarda Energy’s winning bid was for a coal mine with geological reserves of 102.268 million metric tons in Chhattisgarh. This mine, once operational, is expected to generate annual revenue of ₹339.06 crore, based on its peak rated capacity. The project will require a capital investment of ₹315 crore and create employment for approximately 1,800 individuals. The company’s success in securing this block is a testament to its strategic vision and its growing presence in India’s coal and energy sectors. The mine’s substantial reserves will provide a long-term supply of coal for power generation and other industrial uses, including steel and cement production.
On the other hand, S M Steels and Power Ltd won a coal block in Jharkhand with reserves of 77.9 million metric tons. This mine is also expected to generate significant revenue and investment, with annual earnings estimated at ₹339.06 crore at peak capacity. Similar to Sarda Energy’s block, the Jharkhand mine will require a capital investment of ₹315 crore and is anticipated to create around 1,039 jobs. Jharkhand, known for its rich coal reserves, will benefit from this project through both direct employment and the long-term boost to local industry and infrastructure.
The auction is part of a larger initiative by the Indian government to open up the coal sector to private players, thereby enhancing domestic production and reducing dependency on coal imports. The ongoing 10th round of commercial coal mine auctions saw a total of nine blocks put up for sale, with companies competing for these high-value assets. The first day of the auction had already seen companies like NLC India, ACC, and JSW Energy Utkal winning blocks in Odisha and Madhya Pradesh, demonstrating strong industry interest in the coal sector.
These coal blocks are crucial for meeting India’s growing demand for energy, particularly in sectors like power generation, steel manufacturing, and cement production. The winning companies in the auctions, including Sarda Energy and SM Steels, are expected to not only help meet domestic energy demands but also contribute to the export of coal and related products. The mines, once operational, will have a significant impact on India’s energy security and economic growth, especially in terms of industrial development and job creation in the regions where they are located.
One of the key features of this auction is its focus on ensuring that the coal blocks are developed efficiently. The total geological reserves for the nine blocks in this round amount to 2,630.77 million metric tons, with a cumulative PRC of 12 million metric tons per annum. This highlights the scale of investment and the potential output that these coal blocks can contribute to the country’s energy grid. The government is also keen on fast-tracking the development of these blocks, with the goal of reducing coal imports and ensuring a stable, cost-effective supply of coal for Indian industries.
The auction process for commercial coal mining was launched by the Indian government in June 2021, with the aim of boosting domestic coal production and attracting foreign and private sector investments. This initiative is expected to create a more competitive coal market in India, improve efficiency in coal extraction, and enhance the overall sustainability of the industry.
