Western Coalfields Bids for Two Coal Blocks in Commercial Auction
COAL & MINING

Western Coalfields Bids for Two Coal Blocks in Commercial Auction

In a strategic move to overcome limited reserves and challenging geo-mining conditions, Western Coalfields Ltd (WCL) has participated in the bidding for two coal blocks under the 11th tranche of the commercial coal blocks auction, marking the first-ever participation of a Coal India subsidiary in such an auction.

WCL has placed bids for the Bandhak West and Dahegaon Makardhokra IV non-coking coal blocks, both located in Maharashtra and close to the company’s existing mining operations. Chairman and Managing Director Jai Prakash Dwivedi highlighted that securing these blocks would allow WCL to commence mining with minimal capital expenditure, leveraging its existing infrastructure.

Bandhak West emerged as the most sought-after block, attracting 15 bids—the highest among the 19 coal blocks that garnered interest out of the 27 offered. Dahegaon Makardhokra IV received three bids. The coal ministry has initiated the technical evaluation process, with the final allocation expected to be announced within a month.

Looking ahead, WCL remains open to participating in future coal block auctions, particularly for assets located near its current operations. The Nagpur-headquartered company operates 52 mines, including 19 underground and 33 open-cast mines, across Maharashtra and Madhya Pradesh. Between April and December, WCL produced 45.1 million tonne of coal, reflecting a modest 3.1% growth.

The company anticipates coal production for FY 2024-25 to remain steady at around 69 million tonne, similar to last year. However, mining challenges such as high stripping ratios, strata control issues, and limited reserves continue to drive up costs, posing obstacles to growth. Dwivedi noted that upcoming projects would primarily serve to compensate for depleting reserves rather than contribute to increased production.

WCL has projected a gradual decline in production, expecting output to fall to 50 million tonnes by 2047. This underscores the urgent need for securing new reserves and exploring alternative strategies to sustain long-term operations.

In a strategic move to overcome limited reserves and challenging geo-mining conditions, Western Coalfields Ltd (WCL) has participated in the bidding for two coal blocks under the 11th tranche of the commercial coal blocks auction, marking the first-ever participation of a Coal India subsidiary in such an auction. WCL has placed bids for the Bandhak West and Dahegaon Makardhokra IV non-coking coal blocks, both located in Maharashtra and close to the company’s existing mining operations. Chairman and Managing Director Jai Prakash Dwivedi highlighted that securing these blocks would allow WCL to commence mining with minimal capital expenditure, leveraging its existing infrastructure. Bandhak West emerged as the most sought-after block, attracting 15 bids—the highest among the 19 coal blocks that garnered interest out of the 27 offered. Dahegaon Makardhokra IV received three bids. The coal ministry has initiated the technical evaluation process, with the final allocation expected to be announced within a month. Looking ahead, WCL remains open to participating in future coal block auctions, particularly for assets located near its current operations. The Nagpur-headquartered company operates 52 mines, including 19 underground and 33 open-cast mines, across Maharashtra and Madhya Pradesh. Between April and December, WCL produced 45.1 million tonne of coal, reflecting a modest 3.1% growth. The company anticipates coal production for FY 2024-25 to remain steady at around 69 million tonne, similar to last year. However, mining challenges such as high stripping ratios, strata control issues, and limited reserves continue to drive up costs, posing obstacles to growth. Dwivedi noted that upcoming projects would primarily serve to compensate for depleting reserves rather than contribute to increased production. WCL has projected a gradual decline in production, expecting output to fall to 50 million tonnes by 2047. This underscores the urgent need for securing new reserves and exploring alternative strategies to sustain long-term operations.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code