CIL Subsidiary Bids for Coal Blocks in 11th Auction

Kolkata, Feb 24 (PTI) In a bid to overcome limited reserves and adverse geo-mining conditions, Western Coalfields Ltd has participated in the bidding for two coal blocks offered in the 11th tranche of the commercial coal blocks auction, a top company official said.

This is the first time any Coal India subsidiary has participated in commercial coal block auction.

"We have bid for two non-coking coal blocks—Bandhak West and Dahegaon Makardhokra IV. Both blocks are close to our existing mining projects. If we secure them, we will able to carry out mining activities with minimal capex as we already have the necessary infrastructure in place," Western Coalfields chairman and managing director Jai Prakash Dwivedi told PTI.

Both coal blocks are in Maharashtra.

Bandhak West block remained in high demand, receiving a total 15 bids—the highest among all 19 coal blocks that attracted interest out of the 27 blocks put up for auction.

Dahegaon Makardhokra IV received three bids.

The coal ministry stated currently technical evaluation process is currently underway, and the final allocation will be announced within a month.

Dwivedi said WCL is keen to participate in future rounds of coal block auctions but preferably for blocks close to its existing operations.

The Nagpur-headquartered company operates 52 mines, including 19 underground and 33 open-cast mines, across 10 areas in Maharashtra and Madhya Pradesh. WCL produced 45.1 million tonne of coal between April and December, marking a modest 3.1 per cent growth.

"Our total production for FY'25 will remain around 69 million tonne, similar to last year. Despite our best efforts, we expect production to remain flat next fiscal as well due to unique mining challenges, which are leading to higher costs," the official said.

Dwivedi highlighted major hurdles, including high stripping ratios (over burden removal costs), strata control issues, and limited reserves.

He said that upcoming projects would primarily offset depleting reserves rather than contribute to growth.

WCL had anticipated a gradual decline in production, projecting output to drop to 50 million tonne by 2047, signalling the need for new reserves and alternative strategies.