India opens 13th coal-mine auction to expand private output

India recently held an auction launch event that opened the 13th round of coal mine auctions to private investments. The nation has been working hard to develop a paradigm-shifting attitude to the coal sector. The event was graced by high-ranking members of the local and provincial government, who emphasized the need for continued support and investments in the coal sector from private firms. The government introduced 14 blocks of new coal mines set to be auctioned off in the near future.

The Indian government has urged bidders to begin production as soon as possible

The government asserted that potential bidders for the 13th round of commercial coal mines should begin planning their operations to alleviate any concerns over possible incentives that might be missed out on.

The 13th round of auctions will see 14 blocks being auctioned off across Jharkhand, Chhattisgarh, Odisha, Andhra Pradesh, and Madhya Pradesh. Of the 14 blocks, 10 have been fully explored and are ready for immediate operations to begin, but the other 4 have not been fully explored and require more work to secure long-term investment opportunities.

Additionally, three mines that were not sold during previous rounds will be re-offered. The auction is being conducted under the Coal Mines (Special Provisions) Act, 2015, and the Mines and Minerals (Development and Regulation) Act, 1957.

The Union Coal and Mines Minister, G Kishan Reddy, noted that his country surpassed one billion tonnes of coal production in FY 2025. Minister Reddy stated that 134 mines have been auctioned across 12 rounds, drawing investments worth ₹41,600 crores and generating over 3.5 lakh jobs.

“The 13th round will further reduce reliance on imports and conserve foreign exchange,” – India’s Union Coal and Mines Minister, G Kishan Reddy

India’s government highlighted the importance that underground coal gasification (UCG) will play

Government officials noted that over 40% of India’s 370 billion tonnes of coal reserves lie deep underground and are not accessible by conventional mining methods, paving the way for underground coal gasification to become more prominent.

“UCG allows coal to be converted directly into syngas underground, unlocking reserves while minimising land use and disturbance,” – India’s Union Coal and Mines Minister, G Kishan Reddy

India’s Minister of State for Coal and Mines Satish Chandra Dubey stated that the 13th auction round marks a step towards energy self-sufficiency that the nation is striving to achieve. Additionally, the Minister noted that a transparent auction mechanism, along with industry-friendly policies, will provide much-needed support to India’s growing coal sector.

Another high-ranking government official, Coal Secretary Vikram Dev Dutt, noted that the coal sector had transformed since commercial mining began in 2020. Additionally, he reaffirmed the government’s commitment to faster mine operationalisation and better coordination on clearances with the environment and rail ministries and state governments.

He also stated that the government will offer lucrative incentive schemes for a select few mines worth ₹8,500 crores to promote coal gasification. While some nations are facing tough times in the coal sector, India’s coal market is growing at an unprecedented rate.

“We are actively supporting coal gasification through a dedicated incentive framework. This will accelerate adoption and attract investments,” – India’s Coal Secretary Vikram Dev Dutt

Industry insiders have praised the progress being made in the coal sector in India

Taking into account the fact that the coal mining sector is relatively new in India, the exceedingly rapid pace at which the sector is transforming is a sight to behold, and several industry insiders have praised the progress made by the government in auctioning off coal mines. Other, similarly smaller countries like Australia have been implementing measures to expand the reach of the coal sector, despite pushback from environmentalists. With the 13th round of auctions ready to begin, India can be proud of the progress it has made in the coal sector and the energy industry overall.