147 Commercial Coal Blocks To Generate ₹47,500 Crore Annual Revenue, 4.9 Lakh Jobs: Coal Ministry
The Ministry of Coal has said that 147 commercial coal blocks auctioned across nine states since 2020 are expected to contribute significantly to the economy, generating around ₹47,500 crore in annual revenue, ₹55,000 crore in capital investment and nearly 490,000 employment opportunities. The ministry said commercial coal mines generated ₹3,090 crore in revenue through upfront and premium…
The Ministry of Coal has announced that the 147 commercial coal blocks auctioned across nine states since 2020 are poised to generate approximately ₹47,500 crore in annual revenue, invest ₹55,000 crore in capital, and create nearly 490,000 employment opportunities. This revenue is primarily sourced from upfront and premium payments, as well as a revenue-sharing mechanism that includes royalty, premium payments, District Mineral Foundation (DMF) contributions, and National Mineral Exploration Trust (NMET) payments.
In the financial year 2025-26, commercial coal mines have already generated ₹3,090 crore in revenue through these payments. The ministry emphasized that the current revenue-sharing mechanism has significantly augmented state earnings related to coal.
Moreover, the government highlighted recent legislative changes, such as the Mines and Minerals (Development and Regulation) Amendment Act 2026, which establishes a uniform fiscal framework for the sector. This amendment ensures that states cannot impose extra taxes on mineral rights and mineral-bearing land beyond the conditions set by the Centre.
The ministry also praised the transparency of the auction process, which was initiated in 2020 following the Supreme Court's cancellation of 204 coal block allocations in 2014. Auctions now occur online in two stages on the Ministry of Steel Trading Corporation (MSTC) platform, with decrypted bid documents revealed live to bidders.
The auction process is open to all, featuring no end-use restrictions, 100% Foreign Direct Investment (FDI) through the automatic route, and low upfront payments that can be adjusted against future revenue shares, making the field accessible to smaller and newer players.
Since the commercial coal auctions began, 147 mines have been successfully auctioned, with 44 new companies securing coal blocks. Production from these commercial mines has surged from 12.55 million tonnes in 2023-24 to 23.51 million tonnes in 2024-25.
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