Coal Ministry to launch 16th commercial coal mine auction round; 147 mines auctioned so far

The Coal Ministry will launch the 16th round of commercial coal mine auctions on Thursday, offering a fresh set of fully explored and partially explored blocks as the government looks to accelerate domestic coal production and attract new investment into the sector.

The latest auction round is also expected to generate additional employment opportunities across coal-bearing states, the ministry said in a statement on Wednesday. The move comes six years after commercial coal mining was launched by Prime Minister Narendra Modi in 2020.

147 coal mines auctioned across 15 rounds

The ministry said the 16th round is expected to build on the progress made through the previous auction rounds by bringing additional coal blocks into production, generating employment and attracting investment.

Over the past six years, 15 rounds of commercial coal mine auctions have been completed, resulting in the successful auction of 147 coal mines. The process has also brought 44 new companies into the commercial coal mining sector, widening participation beyond traditional coal producers and creating a broader competitive base in the industry.

The auctioned mines are expected to generate annual revenue of approximately ₹47,500 crore, while attracting capital investment of nearly ₹55,000 crore, according to the ministry.

Auctions projected to create 4.9 lakh jobs

The government estimates that the mines auctioned so far will create around 4.9 lakh employment opportunities across coal-bearing states. The employment impact is expected to extend beyond direct mining jobs to activities linked to transportation, logistics, mine development and allied services, providing wider economic benefits in coal-producing regions.

The government has progressively opened up commercial coal mining to private-sector participation as part of efforts to increase domestic production and reduce dependence on imported coal.

100% FDI allowed through automatic route

The commercial coal mining framework continues to operate under liberal terms, the ministry said. These include no restrictions on the end use of coal produced from the auctioned mines and 100% foreign direct investment (FDI) through the automatic route.

The auction framework also provides for low upfront payments, which can be adjusted against future revenue share. The government expects these provisions to lower entry barriers and support wider participation in the sector as more coal blocks are brought under commercial production