Team Siliconindia

• 7 coal blocks auctioned across 3 states under 12th commercial coal mining round
• 7,098 jobs expected to be generated through new mining operations
• Total annual capacity of auctioned blocks: 26.11 million tonnes

In a major move to improve India's energy security and increase employment, the Ministry of Coal recently declared successful auction of seven coal blocks in the 12th tranche of commercial coal mining. The auction was completed on July 31, 2025, and the allotment of the blocks is expected to create more than 7,098 direct and indirect jobs.

The coal blocks are spread out in Chhattisgarh, Jharkhand, Madhya Pradesh, and Maharashtra, out of which five have been fully explored and two have been partially explored. The total peak-rated capacity (PRC) of the awarded blocks is about 16.7 million tonnes per annum (MTPA). The ministry stated that these blocks, apart from being used for energy generation, will also provide a boost to industrial and economic activity in the areas concerned.

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Among the notable achievements, the government reported robust private sector participation, with bidders including traditional mining majors as well as new industrial groups. This indicates increased optimism in India's coal industry reforms, such as the liberalized commercial mining scheme introduced in 2020.

The government anticipates enormous investment coming into the operations of mines, complementary infrastructure, and local community development programs. Along with the generation of employment, the coal blocks are likely to bring in substantial revenue for the concerned state governments in the form of royalties, premiums, and other charges.

Union Coal and Mines Minister Pralhad Joshi stressed that the auction is in line with the government's target of becoming energy self-sufficient and minimising reliance on imported coal. 

Commercial coal mining is a steppingstone to Aatmanirbhar Bharat. These auctions bring in transparency, competition, and better utilisation of the resources

With this auction, the cumulative number of commercial coal blocks auctioned successfully stands at 58 since it began issuing the first tranche in 2020. The subsequent auctions are to be announced later this year.