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Coal Ministry Launches 16th Round of Commercial Coal Mine Auctions

The Ministry of Coal opened the 16th round of commercial coal mine auctions in New Delhi, offering 25 blocks across nine coal-bearing states of India.

By Published · 2 min read
Coal Ministry Launches 16th Round of Commercial Coal Mine Auctions

Why in News

On 17 September 2026 the Ministry of Coal launched the 16th round of commercial coal mine auctions in New Delhi and handed Coal Mine Development and Production Agreements to the successful bidders of six mines auctioned earlier.

The Ministry of Coal launched the 16th round of commercial coal mine auctions in New Delhi on 17 September 2026. Satish Chandra Dubey, Minister of State for Coal and Mines, was the chief guest. Vikram Dev Dutt, Secretary in the Ministry of Coal, was also present.

What the round offers

The round puts 25 coal blocks on the table. Of these, 21 are fully explored and four are partly explored. The blocks lie in nine coal-bearing states. These are Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana and West Bengal. Six mines are offered under the Coal Mines (Special Provisions) Act. The remaining 19 come under the Mines and Minerals (Development and Regulation) Act.

Terms for bidders

The commercial mining framework is deliberately liberal. There is no end-use restriction on the coal produced. Foreign investment of 100 per cent is allowed through the automatic route. Upfront payments are low and can be adjusted against future revenue share. Experienced miners, first-time entrants and technology-led firms may all bid.

Agreements handed over

The Minister also handed Coal Mine Development and Production Agreements, known as CMDPAs, to the winners of six mines auctioned in earlier rounds. The six are Tara (Revised), Margo West, Margo East, Mandla South, Dongeri Tal-II and the Dip Side of PKoC. The winning bidders include CG Syn-Gas and Chemicals, Jharkhand Exploration and Mining Corporation, Qube Commercial, Gallant Ispat and The Singareni Collieries.

What the six mines will bring

Geological reservesAbout 1,504 million tonnes
Peak Rated Capacity11.62 MTPA combined
Annual revenueAround Rs 1,984 crore
Capital investmentNearly Rs 1,743 crore
JobsAbout 15,700

The programme so far

Commercial coal mining was opened up in 2020. Sixteen rounds have now been completed. A total of 147 coal mines have been auctioned to date. Together they are expected to yield yearly revenue of more than Rs 47,500 crore. Projected capital investment crosses Rs 55,000 crore across the nine coal states. The Minister said coal meets about 55 per cent of India's primary energy need and over 70 per cent of its electricity generation. He added that coal output has crossed one billion tonnes for a second year running.

Important Facts

Event16th round of commercial coal mine auctions
Date17 September 2026, New Delhi
MinistryMinistry of Coal
Launched bySatish Chandra Dubey, Minister of State for Coal and Mines
Blocks offered25 (21 fully explored, four partly explored)
StatesNine, from Arunachal Pradesh to West Bengal
CMDPAs signedSix mines, including Tara (Revised) and Mandla South
Reserves of the sixAbout 1,504 million tonnes
Peak Rated Capacity11.62 MTPA
Expected jobsAbout 15,700
Mines auctioned so far147 since 2020
Cumulative revenueMore than Rs 47,500 crore a year

Exam Point of View

Remember the round number (16th), the number of blocks offered (25, of which 21 fully explored), the nine states, the split between the CMSP Act (six) and the MMDR Act (19), the year commercial mining opened (2020), the cumulative count of 147 mines auctioned and the figures for the six CMDPA mines.

Practice Questions

Q2.EconomyMedium

What level of foreign direct investment is permitted in commercial coal mining under the liberal framework described in the 16th auction round?

  1. A.49 per cent through the government route
  2. B.74 per cent through the automatic route
  3. C.100 per cent through the automatic route
  4. D.26 per cent through the government route
Show answer
Correct answer: C. 100 per cent through the automatic route

The commercial coal mining framework was designed to attract wide participation, so it carries no end-use restriction on the coal mined, permits full foreign investment without prior approval, and keeps upfront payments low by allowing them to be adjusted against future revenue share.

Frequently Asked Questions

How many coal blocks are on offer in the 16th round?

25 blocks, of which 21 are fully explored and four partly explored, spread over nine coal-bearing states. Six fall under the CMSP Act and 19 under the MMDR Act.

How much foreign investment is allowed in commercial coal mining?

100 per cent through the automatic route. The framework also carries no end-use restriction and allows low upfront payments adjustable against future revenue share.

How many coal mines have been auctioned since 2020?

A total of 147 mines across nine coal-bearing states, with expected annual revenue of more than Rs 47,500 crore and capital investment above Rs 55,000 crore.

Sources