India's 16th Coal Auction Launches with 25 Blocks Expected to Generate ₹1,984 Crore Annually - Odisha Pulse
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India’s 16th Coal Auction Launches with 25 Blocks Expected to Generate ₹1,984 Crore Annually

India's 16th Coal Auction Launches with 25 Blocks Expected to Generate ₹1,984 Crore Annually

The Ministry of Coal has officially kicked off the 16th round of its commercial coal mine auctions, presenting 25 coal blocks in nine states known for coal production. This announcement was made on Thursday, alongside the transfer of Coal Mine Development and Production Agreements (CMDPAs) for six previously auctioned mines.

In a statement released on Thursday, the Ministry indicated that when the six mines become operational, they are anticipated to generate approximately ₹1,984 crore in annual revenue. Additionally, these mines are expected to draw in nearly ₹1,743 crore in capital investment and create around 15,700 jobs.

The auction round was inaugurated in New Delhi by Minister of State for Coal and Mines, Satish Chandra Dubey, who, along with Coal Secretary Vikram Dev Dutt, presented the CMDPAs to the winning bidders.

The CMDPAs pertain to the following mines: Tara (Revised), Margo West, Margo East, Mandla South, Dongeri Tal-II, and Dip Side of PKoC.

Successful bidders include CG Syn-Gas & Chemicals Ltd., Jharkhand Exploration & Mining Corporation Limited, Qube Commercial Pvt. Ltd., Gallant Ispat Ltd., and The Singareni Collieries Limited.

Collectively, these six mines possess geological reserves totaling around 1,504 million tonnes and a Peak Rated Capacity of 11.62 MTPA.

This latest auction round offers 25 coal blocks, comprising 21 fully explored and four partially explored mines located in Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal.

Among the 25 blocks, six will be auctioned under the Coal Mines (Special Provisions) Act (CMSP), while the remaining 19 will fall under the Mines and Minerals (Development and Regulation) Act (MMDR).

The Ministry welcomes experienced mining companies, newcomers, and technology-focused firms to participate in this commercial coal mining initiative.

This framework eliminates end-use restrictions, permits 100% foreign direct investment through the automatic route, and offers low upfront payments that can be offset against future revenue shares.

With this auction round, India has now completed 16 rounds of its commercial coal mining program since the sector’s opening to private enterprises in 2020.

To date, a total of 147 coal mines have been auctioned, collectively projected to generate over ₹47,500 crore in annual revenue and attract more than ₹55,000 crore in capital investment across nine coal-rich states.

During the launch, Dubey emphasized the critical role of coal in fulfilling India’s energy needs, noting that coal constitutes about 55% of the country’s primary energy consumption and more than 70% of electricity generation.

Rupinder Brar, Additional Secretary and Nominated Authority, remarked that the coal industry is evolving towards a more transparent, technology-driven, and competitive framework, which will help unlock domestic resources, attract investments, and foster new opportunities.

Additionally, Sanoj Kumar Jha, another Additional Secretary, pointed out that coal gasification presents a promising avenue for enhancing value and innovatively utilizing India’s coal assets, calling for quicker technology adoption and the integration of global best practices tailored to Indian conditions.

The Ministry remains committed to reforming the coal sector, encouraging broader participation and investment, and ensuring a dependable and affordable energy supply.

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