New Delhi.
In a major push to expand domestic coal production, bolster regional economics, and attract private capital, the Government of India launched the 16th round of commercial coal mine auctions on September 17, 2026. The new bidding round was formally announced in New Delhi by Minister of State for Coal and Mines Satish Chandra Dubey.
The offering features 25 coal blocks spread across nine mineral-rich states, reinforcing India’s strategy to phase out thermal coal import reliance and ensure long-term energy security.
Breakdown of the 25 Coal Blocks Offered
The 16th auction round incorporates both greenfield and brownfield assets to cater to established industrial groups, private miners, and technology-led enterprises:
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21 Fully Explored Blocks: Ready for accelerated development and production timelines.
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4 Partially Explored Blocks: Offering long-term exploration and resource expansion upside.
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Legislative Framework: 6 blocks are being auctioned under the Coal Mines (Special Provisions) Act (CMSP), while 19 blocks fall under the Mines and Minerals (Development and Regulation) Act (MMDR).
Participating States (9 Total)
The 25 blocks are located in Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana, and West Bengal.
CMDPAs Handed Over for 6 Previously Auctioned Mines
Alongside the launch of the new auction round, the Ministry of Coal executed Coal Mine Development and Production Agreements (CMDPAs) for six previously auctioned mines moving toward commercial operations:
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Tara (Revised)
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Margo West
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Margo East
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Mandla South
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Dongeri Tal-II
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Dip Side of PKoC
Operational Estimates for the 6 Allocated Assets
| Parameter | Projected Figure |
| Geological Reserves | ~1,504 Million Tonnes (MT) |
| Peak Rated Capacity (PRC) | 11.62 MTPA |
| Annual Revenue Generation | ~₹1,984 crore |
| Capital Investment Outlay | ~₹1,743 crore |
| Direct Employment Creation | ~15,700 jobs |
Key Policies Driving Commercial Coal Mining
The commercial auction framework introduced in 2020 eliminated rigid legacy constraints to encourage global and domestic private investment:
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100% Foreign Direct Investment (FDI): Permitted through the automatic route without prior approval requirements.
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Zero End-Use Restrictions: Mined coal can be sold in open markets, utilized for captive power generation, exported, or processed into value-added chemicals.
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Capital Incentive Schemes: Low upfront payments that are offset against future revenue share liabilities.
Since opening the commercial coal mining sector in 2020, India has auctioned 147 coal mines across 16 rounds. Collectively, these assets are estimated to generate over ₹47,500 crore in annual revenue, attract ₹55,000 crore in capital expenditure, and create nearly 4.9 lakh direct and indirect jobs.
Strategic Impact on India’s Energy Mix
Despite aggressive expansion in solar and wind power, coal remains the cornerstone of India’s baseload energy security.
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Primary Energy Share: Accounts for ~55% of national primary energy consumption.
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Power Generation: Supplies >70% of total electricity output.
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Production Milestones: India’s domestic coal production has crossed the 1-billion-tonne mark for two consecutive years, reducing power-grid strain during peak summer loads.
Frequently Asked Questions (FAQ)
Q1: How many coal blocks are being auctioned in the 16th round?
A: A total of 25 coal blocks are being offered, consisting of 21 fully explored blocks and 4 partially explored blocks across 9 states.
Q2: What is the difference between the 25 new blocks and the 15,700 jobs mentioned?
A: The 15,700-job figure specifically refers to the expected employment created by six previously auctioned mines whose CMDPAs were executed on September 17, 2026. The job potential for the 25 new blocks will be determined post-bidding.
Q3: Can foreign companies participate in India’s commercial coal auctions?
A: Yes, the commercial framework permits 100% Foreign Direct Investment (FDI) under the automatic route.
Related Links & Business News Updates
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Read national business coverage on Matribhumi Samachar English.
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Learn more about state energy updates on Matribhumi Samachar Business Section.
DISCLAIMER: This article is published for informational and educational purposes based on government statements and press releases issued by the Ministry of Coal. Projections regarding reserves, capital outlay, revenue, and employment are government estimates subject to project execution timelines, regulatory approvals, and market conditions.
