India: Seven blocks sold in 12th round of commercial coal auctions

• Average revenue share of 26.7% suggests strong industry interest
• Allocated blocks to generate annual revenue of INR 719.90 crore

India’s Ministry of Coal successfully concluded the forward auctions under the 12th round of commercial coal block auctions, which commenced on 27 March 2025. Held over 28-31 July 2025, the auction process resulted in the allocation of seven coal blocks, comprising three fully explored and four partially explored mines.

These blocks collectively possess estimated geological reserves of approximately 1,761.49 million tonnes (mnt). The peak rated capacity (PRC) of the fully explored blocks stands at 5.25 million tonnes per annum (MTPA). The auctions witnessed strong participation from industry stakeholders, recording an average revenue share of 26.70%, reflecting sustained investor interest and confidence in the sector.

The allocated blocks are expected to generate an estimated annual revenue of INR 719.90 crore (excluding partially explored blocks), attract capital investments amounting to approximately INR 787.50 crore, and create employment opportunities for 7,098 individuals. These developments align with the Ministry’s commitment to promoting transparent and investor-friendly policies to enhance domestic coal production.

Since the launch of commercial coal mining in 2020, a total of 131 coal blocks have been successfully auctioned, offering a cumulative production capacity of 277.31 MTPA. Upon operationalisation, these blocks are projected to significantly augment domestic coal output, thereby reducing import dependency. The anticipated outcomes include annual revenue generation of INR 39,359 crore, capital investments of INR 41,597 crore, and employment generation for approximately 3,74,916 individuals in coal-bearing regions.

These initiatives reaffirm the Ministry of Coal’s continued efforts to transform the coal sector into a catalyst for economic growth. By addressing the country’s energy requirements while fostering investment and employment, the commercial coal mining programme is a key pillar of India’s broader strategy towards achieving energy security and realising the vision of an Atmanirbhar Bharat.