India commercial coal mining expansion

India is expanding its commercial coal mining sector through a transparent, rules-based auction process. Following the 2014 Supreme Court cancellation of previous coal block allocations, the sector has transitioned to a framework that allows 100 per cent foreign direct investment through the automatic route.

Recent data indicates that 147 commercial coal blocks auctioned since 2020 are projected to generate approximately ₹47,500 crore in annual revenue, while attracting ₹55,000 crore in capital investment. Commercial coal output grew from 12.55 million tonnes in FY24 to 23.51 million tonnes in FY25.

The Ministry of Coal has launched its 16th round of commercial auctions, offering 25 coal blocks across nine states. This round includes 21 fully explored and four partially explored mines, aiming to increase domestic availability and reduce import dependence. Concurrently, the Ministry has handed over development and production agreements for six mines from previous rounds, which are expected to generate approximately Rs 1,984 crore in annual revenue.