India Auctions 7 Coal Blocks in Latest Commercial Mining Round

The Ministry of Coal has successfully auctioned seven coal blocks three fully explored and four partially explored—under the 12th round of commercial coal mining held from July 28 to 31, 2025.

The auction round, launched on March 27 this year, offered coal blocks with a combined geological reserve of 1,761.49 million tonnes. The three fully explored blocks alone account for a peak rated capacity (PRC) of 5.25 million tonnes per annum (MTPA). Even bids were put in for blocks only partly explored, showing that investors have a good appetite.

The bidding process saw good participation and an average revenue share of 26.70%, which reflects very strong market interest in India’s liberalized coal sector. Seven blocks are counted on to earn ₹719.90 crore per year for the Ministry (these do not include the partially explored blocks), while investments worth about ₹787.50 crore would pour into them.

The projects will not only augment the availability of coal; they are expected to usher in job opportunities for more than 7,000 individuals, delivering a twofold advantage of economic growth and job creation in coal-bearing areas.

This new round adds to the Central government’s ongoing efforts at privatizing coal mining. In all, since commercial mining began in 2020, exams for 131 coal blocks have been launched with a cumulative producing capacity of 277.31 million tonnes per annum (MTPA).

According to officials, the measure is in line with India’s long-term goals for energy, to increase domestic coal production and reduce dependence on imports. It is also envisaged by the government as a way to bring real competition, modernization in technology, and efficiency of the private sector into the coal sector.

The new rounds of auctions are expected to focus even more on unexplored reserves and sustainability-linked mining practices, as India continues working to find the right balance between energy security and environmental commitments.

The Ministry reaffirmed its willingness to support the private sector by ensuring policy stability, the simplicity of approvals, and investment facilitation.