Auctions attract Rs 787.5 cr investment, ministry bets on underground mining to balance growth and ecology

India’s Ministry of Coal successfully concluded the 12th round of commercial coal block auctions between 28 and 31 July 2025 awarding seven blocks with a combined geological reserve of 1,761.49 million tonne. The blocks, three of which are fully explored and four partially explored, have a peak rated capacity of 5.25 million tonne per annum (MTPA).

The auctions launched on 27 March are expected to generate annual revenue of Rs 719.9 crore and attract investments worth Rs 787.5 crore, creating 7,098 jobs. With an average revenue share of 26.7 per cent, the competitive bidding underscored industry confidence in India’s policy stability in the coal sector.

Since the introduction of commercial coal mining in 2020, the government has auctioned 131 coal blocks with a cumulative peak rated capacity of 277.31 MTPA. These are projected to yield Rs 39,359 crore in annual revenue and Rs 41,597 crore in investments, while generating nearly 3.75 lakh jobs.

Coal continues to be India’s dominant energy source, fueling nearly 55 per cent of the country’s electricity generation. However, recent environmental pushbacks, such as the protests in the Hasdeo forest region of Chhattisgarh, have brought the ecological impact of coal mining into sharper focus.