New Delhi: India’s commercial coal mining auction regime, launched in June 2020, has emerged as a major reform in the mining sector, promoting transparent allocation, investment and competition.
Following the Supreme Court’s cancellation of 204 coal blocks in 2014, coal allocation shifted to a rules-based process. Since 2020, 147 coal mines across nine states have been auctioned, with 44 new companies entering the sector.
The auctioned mines are projected to generate around Rs 47,500 crore in annual revenue, attract Rs 55,000 crore in capital investment and create 4.9 lakh jobs. Commercial coal mine revenues from upfront and premium payments stood at approximately Rs 3,090 crore in 2025–26.
Coal production from commercial mines nearly doubled from 12.55 million tonnes in 2023–24 to 23.51 million tonnes in 2024–25. Combined production from captive and commercial mines reached around 210 million tonnes in 2025–26, crossing the 200-million-tonne mark for the first time.
The reform has also enabled public sector coal companies, including subsidiaries of Coal India, to compete alongside private players, while revenue-sharing mechanisms such as royalty, the District Mineral Foundation and the National Mineral Exploration Trust continue to benefit coal-producing states and mining communities.
