The Ministry of Coal in India on September 17 began the 16th round of commercial coal mine auctions, putting 25 blocks in states including Odisha, Maharashtra, Jharkhand and Chhattisgarh on offer, local media reported on September 17.

The round comprises 21 fully explored mines and four partially explored ones. Minister of State for Coal and Mines Satish Chandra Dubey invited investors to take part in the auction, noting that the round could create significant employment and draw fresh investment into the sector.

Dubey also handed over Coal Mine Development and Production Agreements to the winning bidders of six mines auctioned earlier: Tara (Revised), Margo West, Margo East, Mandla South, Dongeri Tal-II, and Dip Side of PKoC.

The ministry said the six mines hold geological reserves of about 1.50 billion tonnes and have a combined peak rated capacity of 11.62 million tonnes per annum (Mtpa). It added that once fully operational, they are expected to generate annual revenue of around Rs 1,984 crore ($207 million), attract capital investment of nearly Rs 1,743 crore and employ about 15,700 workers.

Prime Minister Narendra Modi launched commercial coal mining in 2020. Over the past six years, the sector has successfully auctioned 147 coal mines across 15 complete rounds and brought in 44 new companies.

The auctioned mines are expected to generate annual revenue of approximately Rs 47,500 crore, draw capital investment of nearly Rs 55,000 crore and create around 490,000 employment opportunities across coal-bearing states.

The ministry said the framework has no end-use restrictions, permits 100% FDI through the automatic route and involves low upfront payments adjustable against future revenue share.

Official data showed that India's coal output from captive and commercial coal mines rose to 210.46 million tonnes in FY26, up 10.22% from 190.95 million tonnes in the previous fiscal year.

During FY26, the grant of Mine Opening Permission operationalized 12 captive and commercial coal blocks, adding more than 86 Mtpa of annual production capacity to the operational coal mining base.

In FY24, coal production stood at 147.11 million tonnes, while in FY23 the country's dry fuel output was 115.78 million tonnes.