As many as seven coal mines of Bengal have been put on the block in the sixth round of auctions of 141 mines — the largest such sale by the Modi government.

Data showed that four of the seven Bengal mines fall under the partially explored category — Dhobbanpur, Kapasdanga-Bharkata (northern part), Kapasdanga-Bharkata (southern part) and Makhdumnagar.

The other three mines of the state fall in the explored category — Salbhadra-Gomarpahari, Jaganathpur A and Khagra Joydev

The 141 mines across 11 states are estimated to generate revenues of about Rs 20,000 crore. They were expected to create over 2 lakh jobs and bring in investment of around Rs 22,000 crore.

The auction will be held online through a transparent two-stage process on the basis of percentage revenue share, the coal ministry said.

“The policy gives revenue to many states. Eleven states will benefit from the auction,” finance minister Nirmala Sitharaman said. The finance minister stressed the gasification of coal.

The finance ministry will be extending all help for coal gasification and offer incentives for commercial mining, she said at the official launch of the auctions.

Coal imports by the power sector dropped 41 per cent in FY22 compared with the previous fiscal. Sitharaman said it was not justifiable for a nation with huge coal reserves to keep importing the resource.

Coal and mines minister Pralhad Joshi said his ministry is exploring alternative methodologies for the enhanced use of coal.

He said the finance ministry has offered a Rs 6000-crore incentive for gasification and Rs 250 crore for the exploration process.

The minister said previously auctioned mines have started production and hoped that 10 million tonnes (mt) to 15mt of coal will be produced from the new mines by next year.

He said 67 coal mines have been put up for sale so far. The Centre has relaxed specific provisions of the auction, including a reduction in the overall upfront amount and an easing of the exit route. “We are taking every effort to derisk coal mining projects,” Joshi said.

State-owned CIL (Coal India Limited) has said its production increased 17.4 per cent to 351.9mt in the April-October period of the ongoing fiscal.

Output in the corresponding period of last fiscal was 299.6mt, CIL said in a filing.