New Delhi, Oct 24 (NationPress) The Ministry of Coal has allocated three additional coal blocks to bidders who successfully participated in the commercial auction process. The Coal Mine Development and Production Agreements for these blocks were signed on August 21 of this year, as stated in an official announcement made on Friday.

The blocks, for which vesting orders were issued on Thursday, are Rajgamar Dipside (Deavnara), Tangardihi North, and Mahuagarhi. Among these, two blocks are partially explored, while one block has undergone full exploration, boasting a peak rated capacity of 1 million tonnes per annum. The total geological reserves across these three blocks amount to approximately 1,484.41 million tonnes, according to the statement.

These newly allocated blocks are anticipated to generate an annual revenue of around Rs. 189.77 crore and attract a capital investment of Rs. 150 crore. It is estimated that 1,352 jobs will be created, both directly and indirectly, through these mining operations.

To date, allocation orders have been issued for 130 coal blocks under the commercial auction framework, which collectively have a peak rated capacity of 267.244 million tonnes per annum. This initiative is expected to yield an annual revenue of about Rs 37,700 crores and provide employment opportunities for over 3,61,300 individuals, both directly and indirectly.

In 2025, the Ministry of Coal initiated the 13th round of commercial coal block auctions in August, successfully auctioning seven coal blocks in July. Additionally, vesting orders for five more blocks were issued earlier in October. The 13th round includes both fully and partially explored blocks, with reforms that feature incentives for early production and updated penalties for delays.

As part of its coal sector reforms, the government has shifted from a previously restrictive model to a competitive bidding process for granting coal mining blocks. The policy now allows for commercial sale of coal rather than limiting it to specific end-uses. Since the auction-based regime was introduced in 2014, private sector participation was initially restricted to captive use in their own plants; however, as of 2020, the sector has been opened to commercial coal mining by private entities.

The commercial coal block auctions are conducted through a two-stage online bidding process, which includes a technical screening followed by the submission of competitive initial price offers in the first stage, and a final stage aimed at receiving improved price offers.