India launches 16th round of commercial coal mine auctions, offering 25 blocks for investment

The Ministry of Coal on Thursday launched the 16th round of commercial coal mine auctions, where it offered 25 blocks in states such as Odisha, Maharashtra, Jharkhand and Chhattisgarh.

The latest offering included 21 mines which were fully explored along with four partially explored ones.

"We invite investors to participate in this round of auction. The new round has potential to generate huge employment and attract new investments into the sector," Minister of State for Coal and Mines Satish Chandra Dubey said during the launch.


Dubey also presented the Coal Mine Development and Production Agreements (CMDPAs) to the winning bidders of six previously auctioned mines: Tara (Revised), Margo West, Margo East, Mandla South, Dongeri Tal-II, and Dip Side of PKoC.

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

According to the ministry, the six mines cumulatively have geological reserves of approximately 1,504 million tonnes and a combined peak rated capacity of 11.62 MTPA. It also said, once the mines were fully operationalised, they were expected to generate annual revenue of around Rs 1,984 crore, attract capital investment of nearly Rs 1,743 crore and provide employment to nearly 15,700 workers.

Prime Minister Narendra Modi had launched commercial coal mining in 2020.

The sector, in the past six years, has seen 147 coal mines have been successfully auctioned across 15 complete rounds and brought in 44 new companies.

The mines, post auction, are expected to generate annual revenue of approximately Rs 47,500 crore, attract capital investment of nearly Rs 55,000 crore and create around 4.9 lakh employment opportunities across coal-bearing states.

The auctioned mines are projected to yield around ₹47,500 crore in annual revenue, drive roughly ₹55,000 crore in capital investment, and generate about 490,000 jobs across coal-producing states.

According to the ministry, the framework had no end-use restrictions, allowed 100 per cent FDI permitted through the automatic route and had low upfront payments adjustable against future revenue share.

According to official data cited by PTI, India's coal output from captive and commercial coal mines climbed to 210.46 million tonnes (MT) as of March 2026, which is a 10.22% jump from the 190.95 MT produced during the previous fiscal year.

During FY26, the grant of Mine Opening Permission (MOP) operationalised 12 captive and commercial coal blocks, which expanded the operational coal mining base by adding more than 86 MT of annual production capacity.

In 2023-24, the coal production was at 147.11 MT, and in FY23, the country's dry fuel output was at 115.78 MT.

(With inputs from PTI)