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India opens 25 coal blocks for commercial auction in latest round

The government has put 25 coal blocks up for sale across nine states in the 16th round of commercial coal auctions, continuing its push to boost domestic coal production and attract private sector investment.

LSN India · 17 September 2026

India opens 25 coal blocks for commercial auction in latest round

The coal blocks span multiple states including Arunachal Pradesh, Bihar, Chhastisgarh, and Jharkhand as part of the Centre's ongoing effort to unlock India's coal reserves for commercial mining. The latest auction round aims to increase coal output from private operators and reduce the country's dependence on imports while generating revenue through competitive bidding.

Commercial coal auctions represent a significant shift in India's mining sector, which previously restricted coal extraction to state-owned enterprises. The initiative has gained momentum since its inception, with successive rounds attracting growing interest from domestic and international mining companies seeking access to India's vast coal resources.

The placement of blocks across geographically diverse states reflects the government's strategy to develop coal mining infrastructure in multiple regions, supporting local economies and employment generation. States like Chhattisgarh and Jharkhand, already established coal-producing regions, continue to feature prominently in auction rounds, while newer entrants like Arunachal Pradesh signal expansion into untapped reserves.

The auctions are expected to strengthen India's position as a major coal producer while supporting the country's energy security objectives. Private sector participation through commercial mining is seen as crucial to meeting India's growing energy demands and reducing reliance on coal imports in the coming years.