Government Launches 12th Round of Commercial Coal Mine Auctions.

Coal Minister G Kishan Reddy on Thursday launched the 12th round of commercial coal mine auctions, offering 25 blocks across seven coal-bearing states. This move aims to boost domestic coal production and enhance India’s energy security.

Of the total mines on offer, seven fall under the Coal Mines (Special Provisions) Act, 2015 (CMSP Act), while 18 are under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The auction includes two lignite mines to support diverse energy needs, with 13 fully explored and 12 partially explored coal mines providing immediate and long-term development opportunities.

Additionally, under the second attempt of the 11th round, the Ministry is offering three partially explored mines under the MMDR Act, presenting further investment prospects and reinforcing domestic coal availability.

State-Wise Distribution

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  Chhattisgarh: 7 mines

  
  


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  Jharkhand: 5 mines

  
  


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  Madhya Pradesh: 4 mines

  
  


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  Maharashtra: 3 mines

  
  


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  Odisha, West Bengal, and Rajasthan: 2 mines each

  
  

Minister’s Address

In his address, Reddy highlighted that 2024 marks the 175th anniversary of the Geological Survey of India (GSI) and the 50th anniversary of Coal India Ltd (CIL). He emphasized India's rapid progress in coal production, with 125 mines auctioned so far, attracting over ₹40,000 crore in investments and generating more than four lakh direct and indirect jobs.

“The 12th round of auctions is a significant step in India’s push for self-reliance (Atmanirbhar Bharat), reducing coal imports and saving foreign exchange,” Reddy noted. He added that public sector undertakings (PSUs) are competing with private firms in these auctions, fostering transparency and competition in the sector.

Previous Auction Rounds

In the 11th round earlier this month, 10 companies, including Western Coalfields Ltd (WCL) and Jindal Steel and Power Ltd (JSPL), secured coal blocks. A total of 12 mines were auctioned, comprising eight fully explored and four partially explored mines. These blocks hold a combined geological reserve of 5,759.23 million tonnes, with a Peak Rated Capacity (PRC) of 15.46 million tonnes per annum (mtpa), excluding partially explored mines.

The 11th round saw intense competition, with an average revenue share of 36.27 per cent, reflecting strong industry interest and confidence in India’s coal sector.

Rising Coal Production

Commercial coal production has seen substantial growth. Coal output in FY24 was 12.55 million tonnes, rising to 22.35 million tonnes in FY25 (so far), marking a 78.14 per cent increase. Since commercial coal mining began in 2020, the government has auctioned 125 mines with a combined production capacity of 273.06 mtpa.

Once fully operational, these mines are expected to:

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  Generate annual revenue of ₹38,767 crore

  
  


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  Attract ₹40,960 crore in capital investments

  
  


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  Create employment opportunities for approximately 4,69,170 people

  
  

With India’s coal sector witnessing robust growth, these initiatives are set to enhance energy security and drive economic expansion.

HBL