New Delhi, September 14: The government has auctioned 147 coal blocks under the commercial coal mining regime since its launch in 2020, with the blocks projected to generate around ₹47,500 crore in annual revenue, attract ₹55,000 crore in capital investment and create 4.9 lakh jobs.
According to the Ministry of Coal, 44 successful bidders entering the commercial coal mining framework had no previous experience in coal mining, indicating wider participation beyond established producers.
The auction regime allows coal to be sold without end-use restrictions and permits 100 per cent foreign direct investment through the automatic route.
Public-sector coal producers have also participated in the auctions. Western Coalfields Limited and Northern Coalfields Limited, both subsidiaries of Coal India, have bid for blocks in recent rounds under the same auction framework as private companies.
Commercial coal mine auctions were launched on 18 June 2020, following the broader restructuring of coal block allocation after the Supreme Court cancelled 204 coal block allocations in 2014.
The auctions are conducted online in two stages through the MSTC platform, with bid documents decrypted and opened in the presence of bidders. The framework also keeps upfront payments relatively low and allows them to be adjusted against future revenue-share obligations.
According to the government, auctioned coal mines generate revenue through the competitively determined revenue share, statutory royalty, District Mineral Foundation contributions, National Mineral Exploration Trust contributions and GST.
In FY 2025-26, allocated commercial coal mines generated about ₹3,090 crore through upfront and premium payments.
Production from commercial coal mines increased from 12.55 million tonnes in FY 2023-24 to 23.51 million tonnes in FY 2024-25.
Captive and commercial coal blocks together produced about 210 million tonnes in FY 2025-26, crossing the 200-million-tonne mark for the first time.
Around a decade earlier, production from such blocks stood at 28.8 million tonnes, translating into a compound annual growth rate of about 22 per cent over the period, according to the government.
The Ministry said higher production from captive and commercial mines is supporting domestic coal availability and reducing the need for imports.
The September 14 PIB release said the 147 auctioned blocks are spread across nine states. However, earlier official Ministry of Coal data had listed commercially auctioned mines across 10 states, creating a discrepancy in the cumulative state count.
