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The Ministry of Coal launched the 16th round of commercial coal mine auctions in New Delhi on 17 September 2026, offering 25 coal blocks across nine coal-bearing states.
Coal Mine Development and Production Agreements were handed to the successful bidders of six mines auctioned in earlier rounds, together holding about 1,504 million tonnes of geological reserves.
Since the sector was opened to commercial mining in 2020, 147 coal mines have been auctioned, with cumulative expected annual revenue of over Rs 47,500 crore.
The liberal framework carries no end-use restriction, allows 100% FDI through the automatic route and sets low upfront payments adjustable against future revenue share.
The general law for grant of mineral concessions and auction of mineral blocks in India; 19 of the 25 blocks in this round are offered under it.
Enacted after the Supreme Court cancelled the allocation of 204 coal blocks in September 2014; it provides for re-allocation of those blocks by auction or allotment and for compensation to prior allottees. Six blocks in this round come under it.
Amended both the MMDR Act, 1957 and the CMSP Act, 2015. It removed end-use restrictions on auctioned coal blocks and eased prior-approval requirements, which is what made commercial coal mining by any company - including new entrants - possible.
The contract between the Nominated Authority and a successful bidder that fixes development milestones, production obligations and the revenue share payable; signing it is the step at which an auctioned block becomes an operable mine.
Unlock domestic coal resources, raise production and cut import dependence by opening mining to any bidder.
Key: Opened in 2020; bidding is on revenue share rather than a fixed price, with no end-use restriction, 100% FDI through the automatic route and low upfront payments adjustable against future revenue share.
Provide the market price benchmark from which the revenue share payable by a commercial miner is computed.
Key: A price index combining notified prices, auction prices and import prices, with base year FY 2017-18. Its concept, design and representative prices were developed by the Indian Statistical Institute, Kolkata.
Cut the time between winning a block and operating it by routing every approval through one portal.
Key: Launched by the Ministry of Coal on 11 January 2021; covers mining plan and mine closure plan approval, grant of mining lease, environment, forest and wildlife clearances, land acquisition, central ground water clearance and consent to establish and operate.
Move coal use up the value chain into syngas and downstream chemicals instead of combustion alone.
Key: Cabinet-approved in January 2024 with Rs 8,500 crore of financial assistance in three categories - Rs 4,050 crore for PSUs, Rs 3,850 crore for private players and PSUs, Rs 600 crore for demonstration and small-scale indigenous-technology plants - supporting up to 20% of plant and machinery cost, against a national target of gasifying 100 MT of coal by 2030.
The dominant state producer, incorporated in 1975 as Coal Mines Authority Ltd after nationalisation of the coal sector; the world's largest coal producer and a Maharatna CPSE under the Ministry of Coal.
One of the successful bidders receiving a CMDPA here; founded in 1920 and working the Godavari valley coalfield, it is the state-sector producer outside the CIL fold.
Conducts the commercial coal mine auctions, executes CMDPAs and handles allocation and vesting of blocks under the CMSP Act, 2015.
GS Paper 3 > Infrastructure, Energy and Mineral Resources
General Awareness > Economy and Public Sector Undertakings
Consider the following substances: I. Ethanol II. Nitroglycerine III. Urea Coal gasification technology can be used in the production of how many of them?
Answer: Only two
A bid expressed as a percentage of the value of coal produced, payable to the government, in place of a fixed per-tonne price - the basis of commercial coal auctions since 2020.
The maximum annual production a mine is approved to reach, in million tonnes per annum, as fixed in its approved mining plan.
The officer in the Ministry of Coal designated under the Coal Mines (Special Provisions) Act, 2015 to conduct auctions, allot blocks and sign the development and production agreements.