Page 52 - Policy Economic Report - April 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

reliance, reducing import dependency, and driving sustainable mining practices to bolster the nation’s
energy security and economic resilience.

Ministry of Coal Executed Agreements for Two More Commercial Coal Mines, Advancing India’s Energy
Security and Employment Goals

In a notable advancement towards strengthening India’s energy independence and economic growth, the
Ministry of Coal signed Coal Mine Development and Production Agreements (CMDPAs) with the successful
bidders of two coal mines, Marwatola-II and Namchik West, under the 11th round of commercial coal
mining auctions.

These agreements mark another step toward the country’s goal of achieving self-reliance in coal
production. Singhal Business Private Limited has secured the Marwatola-II block, while PRA Nuravi Coal
Mining Private Limited has emerged as the successful bidder for Namchik West.

Of the two coal mines, one is fully explored and the other is partially explored. Combined, they are
projected to generate an estimated annual revenue of Rs. 106.14 crore, based on a total Peak Rated
Capacity (PRC) of ~0.34 million tonnes per annum (MTPA). To operationalise these mines, a capital
investment of approximately Rs. 55 Crore will be required.

In terms of employment potential, the two blocks are expected to create around 460 direct and indirect
job opportunities, contributing to the socio-economic development of their respective regions.

With these additions, the Ministry of Coal has now signed CMDPAs for a total of 120 coal mines auctioned
under the commercial coal mining framework. These mines represent a cumulative PRC of 265.64 MTPA,
with an estimated annual revenue generation of Rs. 37,300 crore and a projected investment of Rs. 39,900
Crore. Moreover, they are expected to provide employment to nearly 3,59,200 individuals across the
country.

SECL to Become First Coal PSU to Use Paste Fill Technology for Mining

South Eastern Coalfields Limited (SECL) is set to become the first coal PSU in India to adopt paste fill
technology for coal mining, marking a major step toward sustainable and environmentally friendly mining
practices.

To implement this innovative underground mining technology, SECL has signed a ?7040 crore agreement
with TMC Mineral Resources Private Limited.

Under this agreement, large-scale coal production will be undertaken using paste fill technology in the
Singhali underground coal mine located in SECL’s Korba area. Over a period of 25 years, the project is
expected to produce approximately 8.4 million tonnes (84.5 lakh tonnes) of coal.

Paste filling is a modern underground mining method that eliminates the need to acquire surface land.
After coal extraction, the mined-out voids are filled with a specially prepared paste made from fly ash,
crushed overburden from opencast mines, cement, water, and binding chemicals. This process prevents
land subsidence and ensures the structural stability of the mine. Importantly, the paste utilizes industrial
waste materials, making the process environmentally sustainable and promoting waste recycling.

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