New mine agreements will give a big boost to India's coal sector; 40,560 jobs are expected

16 Jul 2024

Giving a significant boost to India's commercial coal mining sector, the Ministry has successfully executed Coal Mining Development and Production Agreements for three mines auctioned in the second attempt of the 7th round. This development paves the way for an increase in both production capacity and employment.

The coal mines in focus include Machhakata (revised) coal mine, Kudanali Lubari coal mine, and Sakhigopal-B Kakurhi coal mine. These agreements were secured by NLC India Limited, Gujarat Mineral Development Corporation Limited, and Tamil Nadu Generation and Distribution Corporation Limited, respectively.

The commissioning of these mines is expected to generate annual revenue of about ?2,991.20 crore based on the estimated total peak rate capacity (PRC) of about 30.00 million tons per annum (MTPA). This represents a significant increase in the revenue potential from India's coal resources, in line with the government's efforts towards increasing domestic coal production.

Moreover, these mines are estimated to generate around 40,560 direct and indirect jobs, which will contribute significantly to employment generation in the sector. The initiative also involves a substantial investment of around Rs 4,500 crore, aimed at developing the infrastructure required to bring these mines into full operation.