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.

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 reserves | About 1,504 million tonnes |
| Peak Rated Capacity | 11.62 MTPA combined |
| Annual revenue | Around Rs 1,984 crore |
| Capital investment | Nearly Rs 1,743 crore |
| Jobs | About 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
| Event | 16th round of commercial coal mine auctions |
|---|---|
| Date | 17 September 2026, New Delhi |
| Ministry | Ministry of Coal |
| Launched by | Satish Chandra Dubey, Minister of State for Coal and Mines |
| Blocks offered | 25 (21 fully explored, four partly explored) |
| States | Nine, from Arunachal Pradesh to West Bengal |
| CMDPAs signed | Six mines, including Tara (Revised) and Mandla South |
| Reserves of the six | About 1,504 million tonnes |
| Peak Rated Capacity | 11.62 MTPA |
| Expected jobs | About 15,700 |
| Mines auctioned so far | 147 since 2020 |
| Cumulative revenue | More 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
How many coal blocks are offered in the 16th round of commercial coal mine auctions launched on 17 September 2026?
- A.19 blocks
- B.21 blocks
- C.25 blocks
- D.32 blocks
Show answer
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.
Read the full explanation →What level of foreign direct investment is permitted in commercial coal mining under the liberal framework described in the 16th auction round?
- A.49 per cent through the government route
- B.74 per cent through the automatic route
- C.100 per cent through the automatic route
- D.26 per cent through the government route
Show answer
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.
Read the full explanation →Since the sector was opened to commercial mining in 2020, how many coal mines have been auctioned in India?
- A.116
- B.128
- C.147
- D.165
Show answer
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.
Read the full explanation →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
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