Seven Coal Blocks Auctioned Amid Ministry’s Broader Push for Sustainable Coal Mining

• Seven coal blocks auctioned in 12th round, adding 1,761.49 MT reserves and 5.25 MTPA peak rated capacity.

• Auctions expected to generate ₹719.90 crore revenue annually, attract ₹787.50 crore investment, and create over 7,000 jobs.

• Ministry of Coal has planned fresh incentives to boost sustainable underground mining, aiming for higher output and lower environmental impact.

Seven coal blocks including three fully explored and four partially explored coal blocks have been successfully auctioned in the 12th round of commercial auctions for commercial mining, according to a statement from the Ministry of Coal.

The Ministry of Coal launched the 12th round of coal block auctions for commercial mining on March 27, 2025. The auctions were held from July 28 to July 31, 2025.

These seven blocks hold a combined geological reserve of approximately 1,761.49 million tonnes. The cumulative Peak Rated Capacity (PRC) of these blocks stands at 5.25 MTPA (excluding partially explored coal blocks), the Ministry said.

The auctions witnessed intense competition, achieving an average revenue share of 26.70%.

"This reflects the sustained interest of industries in the coal sector and the Ministry's efforts to provide a stable and transparent policy framework," the Ministry of Coal stated.

These blocks are expected to generate an annual revenue of approximately ₹719.90 crore (excluding partially explored blocks), likely to attract a capital investment of around ₹787.50 crore, and create approximately 7,098 employment opportunities.

Since the inception of commercial coal mining in 2020, a total of 131 coal blocks have been auctioned successfully, with a production capacity of 277.31 Million Tonnes per year.

Upon operationalisation, these blocks will immensely contribute to enhance domestic coal production and in making country self-reliant in coal sector.

Collectively, these blocks are expected to generate annual revenue of ₹39,359 crores, capital investment of ₹41,597 Crores and provide employment for 374,916 people in coal-bearing regions. 

"These strategic initiatives of the Ministry of Coal reaffirm the Ministry's dedication to transforming the coal sector into a key driver of economic growth. These initiatives not only address the nation's energy demands but also foster economic stability and create employment opportunities, contributing to the vision of an Atmanirbhar Bharat," the coal ministry statement concluded. 

Alongside the auctions, the ministry is promoting incentives to boost sustainable underground mining.

Focus on Underground Mining

The Coal Ministry is also exploring additional incentives for underground (UG) commercial coal block auctions in India to stimulate sustainable mining practices and boost output. Currently, 37 out of 113 auctioned mines are UG, reported PTI. The ministry is also working to secure environmental concessions with the Ministry of Environment, Forest, and Climate Change (MoEFCC).

These incentives are expected to take effect prospectively, further enhancing investment attractiveness and aligning with broader production targets for 2025‑26.