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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

Q1.EconomyMedium

How many coal blocks are offered in the 16th round of commercial coal mine auctions launched on 17 September 2026?

  1. A.19 blocks
  2. B.21 blocks
  3. C.25 blocks
  4. D.32 blocks
Show answer

Correct answer: C. 25 blocks

Explanation

The correct answer is 25 blocks. The 16th round puts 25 coal blocks before bidders, of which 21 are fully explored and four only partly explored, and they are spread across nine coal-bearing states from Arunachal Pradesh to West Bengal. Option A is wrong because 19 is the count of blocks offered under the Mines and Minerals (Development and Regulation) Act within this same round, the remaining six being offered under the Coal Mines (Special Provisions) Act. Option B is wrong because 21 is the number of fully explored mines inside the round, not the total. Option D is a plain distractor with no basis in the announcement. Candidates should note how the same release carries several close numbers, and a paper setter will usually pick one of the smaller ones as the trap.

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

Explanation

The correct answer is 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. Options A, B and D are wrong because they name partial caps or the government approval route, neither of which applies to this sector; such caps belong to other regulated sectors and are used here only as distractors. Remember also that the blocks are open to experienced mining companies, new entrants and technology-driven enterprises alike, which is why the ministry describes the framework as liberal. This combination of features is a favourite question in economy sections.

Q3.EconomyHard

Since the sector was opened to commercial mining in 2020, how many coal mines have been auctioned in India?

  1. A.116
  2. B.128
  3. C.147
  4. D.165
Show answer

Correct answer: C. 147

Explanation

The correct answer is 147. With the launch of the sixteenth round, the commercial coal mining programme has auctioned this many mines since the sector was thrown open in 2020. These mines are expected to bring annual revenue of more than Rs 47,500 crore and capital investment of over Rs 55,000 crore across nine coal-bearing states. Options A, B and D are wrong because no such totals were reported; they are placed close to the real figure so that a candidate who remembers only the rough scale is caught out. Two supporting facts are worth memorising alongside: coal meets about 55 per cent of India's primary energy requirement and over 70 per cent of its electricity generation, and national coal production has crossed one billion tonnes for a second consecutive year.

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