Coal Ministry launches 16th commercial mine auction round, offers 25 blocks

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Coal Ministry launches 16th commercial mine auction round, offers 25 blocks

Synopsis

India's commercial coal mining programme hit its 16th auction round with 25 new blocks on offer — and a cumulative tally of 147 mines auctioned, ₹47,500 crore in projected annual revenue, and ₹55,000 crore in capital investment. The simultaneous handover of agreements for six earlier mines, set to generate 15,700 jobs and ₹1,984 crore in annual revenue, signals the programme is moving from announcement to execution.

Key Takeaways

The Ministry of Coal launched the 16th Round of Commercial Coal Mine Auctions on 17 September 2026 in New Delhi .
The round offers 25 coal blocks — 21 fully explored, 4 partially explored — across 9 states .
CMDPAs were handed over for 6 mines with combined geological reserves of 1,504 million tonnes and peak capacity of 11.62 MTPA .
The six mines are projected to generate ₹1,984 crore in annual revenue, attract ₹1,743 crore in investment, and create 15,700 jobs .
Cumulatively, 147 mines have been auctioned with expected annual revenue of over ₹47,500 crore and projected investment of more than ₹55,000 crore .
India's coal production crossed 1 billion tonnes for the second consecutive year , according to MoS Satish Chandra Dubey .

The Ministry of Coal on Thursday, 17 September 2026, launched the 16th Round of Commercial Coal Mine Auctions in New Delhi, offering 25 coal blocks across nine coal-bearing states to experienced miners, new entrants and technology-driven enterprises. The launch also saw the formal handover of Coal Mine Development and Production Agreements (CMDPAs) to successful bidders of six mines auctioned in earlier rounds.

Agreements Handed Over for Six Earlier-Auctioned Mines

CMDPAs were executed for Tara (revised), Margo West, Margo East, Mandla South, Dongeri Tal-II, and Dip Side of PKoC. The successful bidders are CG Syn-Gas & Chemicals Ltd, Jharkhand Exploration & Mining Corporation Limited, Qube Commercial Pvt Ltd, Gallant Ispat Ltd, and The Singareni Collieries Limited.

Together, the six mines hold geological reserves of approximately 1,504 million tonnes and a combined Peak Rated Capacity of 11.62 MTPA. Once operational, they are projected to generate annual revenue of around ₹1,984 crore, attract capital investment of nearly ₹1,743 crore, and create approximately 15,700 employment opportunities in their respective coal-bearing regions, according to an official statement.

What the 16th Round Offers

The new auction round puts 25 coal blocks on the table — 21 fully explored and four partially explored — spread across Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal. Of these, six mines are offered under the Coal Mines (Special Provisions) Act (CMSP) and 19 under the Mines and Minerals (Development and Regulation) Act (MMDR).

The framework carries investor-friendly terms: no end-use restrictions, 100% FDI through the automatic route, and low upfront payments adjustable against future revenue share — provisions designed to draw both domestic and foreign capital into a sector traditionally dominated by state-owned enterprises.

What the Government Said

Minister of State for Coal and Mines Satish Chandra Dubey addressed the launch, underscoring coal's central role in India's energy mix — meeting around 55% of the country's primary energy requirement and over 70% of its electricity generation. He highlighted that coal production has crossed the 1 billion tonne mark for the second consecutive year under the guidance of Prime Minister Narendra Modi, calling it a reflection of the sector's growing contribution to energy security.

Dubey also called for greater participation by private and technology-driven players, emphasising the government's push for transparency, competition, and technology-enabled auction processes. He urged stakeholders to actively engage in the process and help reduce India's dependence on coal imports.

Programme Milestone and Cumulative Impact

With this round, the commercial coal mining programme has now completed sixteen rounds since its inception. A total of 147 coal mines have been auctioned to date, with a cumulative expected annual revenue of over ₹47,500 crore and projected capital investment of more than ₹55,000 crore across nine states. This comes amid sustained government pressure to lift domestic output and trim an import bill that has weighed on India's energy trade balance. Notably, the programme has steadily expanded its sectoral coverage — from a handful of mines in early rounds to a diversified slate that now includes partially explored blocks to attract risk-tolerant investors.

Whether private participation accelerates in this round will be a key indicator of market confidence in India's long-term coal trajectory, even as the broader energy transition debate intensifies globally.

Point of View

India's commercial coal auction programme has the numbers to point to — 147 mines, ₹47,500 crore in projected annual revenue — but the gap between auctioned and operational mines remains the programme's Achilles heel. The simultaneous CMDPA handovers are a positive signal that execution is catching up, yet the inclusion of partially explored blocks in this round suggests the government is willing to lower the bar to sustain momentum. With the global energy transition accelerating, the long-term demand outlook for newly commissioned mines is a question the auction framework does not yet answer.
NationPress
17 Sept 2026

Frequently Asked Questions

What is the 16th Round of Commercial Coal Mine Auctions?
It is the latest tranche of India's commercial coal mining programme, launched on 17 September 2026, offering 25 coal blocks — 21 fully explored and 4 partially explored — across nine coal-bearing states. The programme allows 100% FDI, no end-use restrictions, and low upfront payments adjustable against future revenue share.
Which states are covered in the 16th coal auction round?
The 25 blocks are spread across Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal. Six mines fall under the Coal Mines (Special Provisions) Act and 19 under the Mines and Minerals (Development and Regulation) Act.
What are the CMDPAs handed over at the launch event?
Coal Mine Development and Production Agreements were executed for six mines — Tara (revised), Margo West, Margo East, Mandla South, Dongeri Tal-II, and Dip Side of PKoC. Together they hold 1,504 million tonnes of geological reserves and are expected to create 15,700 jobs and ₹1,984 crore in annual revenue once operational.
How many coal mines have been auctioned under the commercial programme so far?
A total of 147 coal mines have been auctioned across sixteen rounds to date. The cumulative programme projects annual revenue of over ₹47,500 crore and capital investment of more than ₹55,000 crore across nine states.
Who can bid in the commercial coal mine auctions?
The auction framework is open to experienced mining companies, new entrants, and technology-driven enterprises. It permits 100% FDI through the automatic route with no end-use restrictions, making it accessible to both domestic and foreign investors.
Nation Press
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