The Centre launched the 16th round of commercial coal mine auctions on Thursday in New Delhi, with the Ministry of Coal putting 25 coal blocks up for bidding as it looks to expand private participation in domestic mining. According to the ministry's press release, the 16th auction round will be launched in New Delhi in the presence of Minister of State for Coal and Mines Satish Chandra Dubey. The latest offering includes 21 fully explored and 4 partially explored coal blocks spread across Odisha, Maharashtra, Jharkhand, Chhattisgarh, West Bengal, Bihar, Telangana and Arunachal Pradesh. As per the Coal Ministry statement, the framework would continue to operate under liberal terms, with no end-use restrictions, 100 per cent foreign direct investment (FDI) permitted through the automatic route and low upfront payments adjustable against future revenue share. The ministry also signed Coal Mine Development and Production Agreements (CMDPAs) with successful bidders of six coal mines auctioned earlier, including CG Syn-Gas & Chemicals, Jharkhand Exploration & Mining Corporation, Qube Commercial, Gallant Ispat and The Singareni Collieries.
The ministry signed CMDPAs for six coal mines with geological reserves of 1,504 million tonnes and a combined peak rated capacity of 11.62 MTPA. These mines are expected to generate annual revenue of ₹1,984 crore and attract capital investment of ₹1,743 crore once operational. The agreements also create 15,700 employment opportunities across the six operational mines. The latest round comes after 15 rounds of commercial coal auctions since the policy was introduced in 2020, with 44 new companies entering the coal mining sector. Minister of State for Coal and Mines Satish Chandra Dubey emphasized that "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."
The ministry reported that total revenue generated from allocated commercial mines stood at ₹3,090 crore in the last financial year (2025-26). The revenue-sharing design has nearly tripled states' coal revenue in a decade, with revenue sharing, royalty, District Mineral Foundation (DMF), National Mineral Exploration Trust (NMET), and Goods & Services Tax (GST) all contributing to state revenues. The ministry emphasized that every auctioned block contributes significantly to states through multiple revenue streams, with the government keeping financial entry requirements relatively flexible to make coal mining accessible to new and smaller participants.
Coal output from only commercial mines demonstrated significant growth, rising from 12.55 million tonnes in 2023-24 to 23.51 million tonnes in 2024-25. As per official data, India's coal production from captive and commercial mines reached 210.46 MT as of March 2026, registering a robust year-on-year growth of 10.22 per cent over 190.95 MT in the previous fiscal. During FY26, 12 captive and commercial coal blocks were operationalised through the grant of Mine Opening Permission (MOP), significantly expanding the operational coal mining base by adding more than 86 MT of annual production capacity. The ministry expects the new auction round to add to domestic coal availability and help reduce India's dependence on imports, while supporting its broader energy security goals.
The government enacted the Mines and Minerals (Development and Regulation) Amendment Act 2026 last month to establish a uniform fiscal framework. This legislation prevents state governments from levying fresh taxes on mineral rights and mineral-bearing lands except under prescribed Centre conditions. Commercial coal mining was launched in 2020, with the ministry noting that following the Supreme Court's cancellation of 204 coal blocks in 2014, allocation moved to a transparent, rules-based process. Foreign investors will also be able to participate, with 100% FDI allowed through the automatic route, with upfront payments kept low and adjustable against future revenue share. Of the 25 blocks in the latest round, six coal mines are offered under the Coal Mines (Special Provisions) Act (CMSP) and 19 under the Mines and Minerals (Development and Regulation) Act (MMDR).
