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Coal India allocates 23 closed mines to private firms for extracting untapped reserves

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In Short:

State-run Coal India Ltd (CIL) has awarded 23 closed mines to private companies on a revenue-sharing basis. The mines have a capacity of 34.14 million tonnes per year with 635 million tonnes of extractable reserves. The move aims to conserve resources, provide livelihood, and reduce land degradation. Private companies will share revenue with CIL and get rebates for gasification. Successful bidders must offer maximum revenue to CIL.

Coal India Ltd Awards 23 Mines to Private Players for Mining Latent Coal Reserves

In a recent development, State-run Coal India Ltd (CIL) has taken a significant step by awarding 23 closed and discontinued mines to private players on a revenue-sharing basis. This move is aimed at tapping into the latent coal reserves present in these mines.

Key Details

The cumulative peak rated capacity of these mines amounts to 34.14 million tonnes per year, with an estimated total extractable reserves of 635 million tonnes, as per a statement released by the state-run monopoly.

Although the names of the private companies receiving the mines were not disclosed, it’s noteworthy that CIL has identified a total of 34 discontinued mines holding substantial coal reserves that are currently untapped.

Revenue-Sharing Model

CIL has decided to offer these mines to private players willing to operate and produce coal. The successful bidder would share a minimum revenue of 4% with the state-run miner, with a contract period of up to 25 years.

The move is expected to bring benefits in terms of resource conservation, substituting imported coal with good-quality local coal, and creating livelihood opportunities for local communities surrounding these mines.

Environmental Impact

From an environmental perspective, the initiative is deemed advantageous as it minimizes land degradation by utilizing existing mining infrastructure in place.

Future Plans

CIL is currently in the process of identifying additional mines to attract wider participation with simplified bid norms, as part of its ongoing efforts to boost coal production and utilization.

Operational Details

The mine operators awarded by CIL can benefit from a 50% revenue-sharing rebate by selling at least 10% of the coal for gasification. They are also permitted to use existing infrastructure and project facilities without any additional payment.

Furthermore, the operators have the freedom to choose their preferred technology and mining machinery for coal extraction while adhering to the market price mechanism for coal sales through auctions.


The initiative by Coal India Ltd to engage private players in mining latent coal reserves holds promising prospects for enhancing coal production, fostering economic growth, and supporting local communities in mining regions.

It’s imperative to keep an eye on further developments in the coal sector as CIL continues to drive innovation and efficiency in its mining operations.

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