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.

Next Story
Infrastructure Urban

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's  fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building  (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous  Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in  Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant  advancement in the company's commitment to engineered performance, manu..

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App