147 Coal Blocks to Generate ₹47,500 Crore Annual Revenue

The Ministry of Coal has announced that 147 commercial coal blocks auctioned across nine states since 2020 are expected to generate significant revenue and create employment opportunities.

The coal blocks are expected to contribute around ₹47,500 crore in annual revenue, ₹55,000 crore in capital investment, and nearly 490,000 employment opportunities.

The Ministry of Coal said that commercial coal mines generated ₹3,090 crore in revenue through upfront and premium payments during 2025-26. The current revenue-sharing mechanism has helped states substantially increase their coal-related earnings.

The mechanism includes royalty, premium payments, District Mineral Foundation (DMF) contributions, and National Mineral Exploration Trust (NMET) payments. Every auctioned block contributes a strong share to the states in the form of revenue share, royalty, DMF contributions, NMET contributions, and Goods & Services Tax (GST).

The government has also pointed to recent legislative changes, including the Mines and Minerals (Development and Regulation) Amendment Act 2026. The amended provisions create a uniform fiscal framework for the sector and prevent states from imposing additional taxes on mineral rights and mineral-bearing land beyond conditions specified by the Centre.

The commercial coal auctions were introduced in 2020 after the Supreme Court cancelled 204 coal block allocations in 2014. The new system moved allocation towards a transparent and competitive process.

The bidding is conducted online in two stages on the MSTC platform, with bid documents decrypted and opened live in front of bidders. There is no end-use restriction, 100 per cent FDI is allowed through the automatic route, and upfront payments are kept low and adjustable against future revenue share.

According to the Ministry of Coal, 147 mines have been auctioned so far, with 44 new companies securing coal blocks. Production from commercial mines increased from 12.55 million tonnes in 2023-24 to 23.51 million tonnes in 2024-25.

The coal ministry's efforts to boost the coal sector are expected to have a significant impact on the economy and create new opportunities for employment and investment.

The success of the commercial coal auctions is a testament to the government's commitment to transparency and competitiveness in the sector. The increased revenue and employment opportunities generated by the coal blocks are expected to contribute to the country's economic growth and development.

In conclusion, the 147 commercial coal blocks auctioned since 2020 are expected to generate significant revenue and create employment opportunities, contributing to the country's economic growth and development.