Interest surges for Coal mines once scrapped in 2014 scam
In a strong vote of confidence for India’s reformed coal allocation process, two underground coal mines in Chhattisgarh—once scrapped in the wake of the 2014 coal block allocation scam—have now attracted significant interest in the latest round of commercial coal mine auctions. Rajgamar Dipside (Deavnara) and Rajgamar Dipside (South of Phulakdih Nala), located in Korba district, together received a total of 14 bids under the 12th tranche of auctions. These two mines were the only underground blocks out of six on offer to receive bids, highlighting selective yet focused attention from bidders on high-potential assets backed by regulatory clarity and transparent processes.
The Ministry of Coal announced on Wednesday that the bidding process involved both online and offline submissions, all of which were opened in the presence of participating companies. The electronic decryption of bids and the subsequent opening of sealed physical documents were conducted transparently, with the entire process displayed on-screen for bidders to observe. This transparent mechanism marks a notable shift from the opaque practices that led to the cancellation of these and over 200 other coal blocks by the Supreme Court in 2014.
Eight companies have placed bids across the two mines. Rajgamar Dipside (Deavnara) received six bids, while Rajgamar Dipside (South of Phulakdih Nala) attracted eight. The participating bidders include a mix of established industrial and mining firms such as Dilip Buildcon, Godawari Power and Ispat, TMC Mineral Resources, Shyam Metalics and Energy, and others. Their interest in these previously controversial assets reflects renewed faith in the structural reforms implemented in India’s coal sector over the past decade.
Both mines have a history tied to the country’s largest coal allocation scandal. At the time, Rajgamar Dipside (Deavnara) had been allocated to API Ispat & Powertech Pvt Ltd and CG Sponge Manufacturing Consortium Coalfield Pvt Ltd, while the South of Phulakdih These allocations were subsequently cancelled, and the blocks were later included in re-auction tranches by the Ministry of Coal. According to government data, Rajgamar Dipside (Deavnara) contains an estimated 78.464 million tonnes (MT) of non-coking coal, while Rajgamar Dipside (South of Phulakdih Nala) holds approximately 61.697 MT. These reserves are critical for power and industrial use and form part of India’s broader strategy to strengthen domestic coal production and reduce reliance on imports.
The strong bidding response to these two mines underscores the broader trend of private sector re-engagement with coal assets, particularly under the commercial mining regime introduced to increase transparency, competition, and production efficiency. The revival of investor interest in blocks that were once the subject of legal and regulatory controversy demonstrates how policy reform and transparent processes can unlock value from previously stranded natural resources.
