New Delhi, Jan 15 (NationPress) The Ministry of Coal has signed agreements for coal mine development and production with Damodar Valley Corporation concerning three commercial coal blocks: Dhulia North, Mandakini B, and Pirpainti Barahat. This marks a crucial advancement in bolstering India’s energy security and stimulating economic growth, as stated in an official press release on Thursday.

These blocks were successfully auctioned during the 13th round of commercial coal mining auctions.

The signing of these agreements signifies a major milestone in India's path toward self-sufficiency in the coal industry. All three coal blocks have been fully explored, collectively boasting a Peak Rated Capacity (PRC) of 49 million tonnes per annum (MTPA), highlighting their vital role in addressing the nation’s increasing energy demands, as per the statement.

The projects are anticipated to yield an estimated annual revenue of Rs 4,621 crore and attract a capital investment of around Rs 7,350 crore. This will significantly contribute to economic activities and industrial expansion, according to the statement.

Beyond enhancing energy supply, the development of these coal blocks is expected to bring substantial socio-economic advantages. The three projects are estimated to create approximately 66,248 direct and indirect job opportunities, promoting livelihood creation and regional advancement in coal-rich areas.

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

As part of the reforms in the coal sector, the government has transitioned from a previously restrictive model to awarding coal mining blocks through a competitive bidding process. This includes shifting from specific end-use requirements to allowing the commercial sale of coal. The auction-based system, introduced in 2014, facilitated private sector participation, albeit limited to captive use in their own end-use plants. In 2020, the sector was opened for commercial coal mining by private entities.

The auctions for commercial coal blocks employ a two-stage online bidding process. The first stage involves technical screening and the submission of competitive initial price offers, followed by a second and final stage aimed at receiving improved price offers.