Parliament Question: Commercial coal mining and auctioned coal blocks

GOVERNMENT OF INDIA MINISTRY OF COAL RAJYA SABHA STARRED QUESTION NO.*383 ANSWERED ON 30.03.2026 COMMERCIAL COAL MINING AND AUCTIONED COAL BLOCKS *383. SHRI DEEPAK PRAKASH: Will the Minister of COAL be pleased to state: (a) the number of coal mines auctioned since the inception of the commercial coal mining framework; (b) the total peak rated capacity of these mines; (c) the estimated investment and employment expected to be generated from their operationalization; (d) whether the contract, at the time of the auction, includes a provision requiring the mining company to provide employment to local residents; (e) the number of such mines which have commenced production till date; and (f) the steps taken by Government to expedite the operationalization of the auctioned coal blocks and to enhance private sector participation in the coal sector? ANSWER MINISTER OF COAL & MINES (SHRI G. KISHAN REDDY) (a) to (f): A statement is laid on the Table of the House. *******STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (F) IN RESPECT OF RAJYA SABHA STARRED QUESTION NO.*383 FOR REPLY ON 30.03.2026 REGARDING COMMERCIAL COAL MINING AND AUCTIONED COAL BLOCKS ASKED BY SHRI DEEPAK PRAKASH. (a) Since the launch of the Commercial Coal Mining framework in June 2020, a total of 136 coal blocks have been successfully auctioned by the Ministry of Coal. (b) The aggregate Peak Rated Capacity (PRC) of these 136 coal blocks is 325.04 Million Tonnes per Annum (MTPA). (c) These 136 blocks are expected to attract an estimated investment of ₹48,756 crore and generate employment for approximately 4,39,447 persons. (d) No, the contract (Coal Mine Development and Production Agreement (CMDPA)) does not impose a strict requirement, but rather includes an advisory provision where the successful bidder is explicitly advised to "provide employment opportunities to local communities to the maximum extent possible". (e) Out of the 136 auctioned coal blocks, 12 blocks have commenced production as on date. (f) The Government has undertaken a series of policy, and auction-related reforms to ensure early operationalization and encourage private sector participation in coal sector. To facilitate early operationalization, regular review meetings are being held at different levels with the State Governments, MoEF&CC and other stakeholders to address the bottlenecks if any in operationalization of the mines. A dedicated Project Monitoring Unit (PMU) has been put in place to resolve mine-specific issues in a time-bound manner. The Coal Mine Development and Production Agreement (CMDPA) provides for defined development milestones, backed by performance security and a structured mechanism for review of delays, including issuance of show-cause notices and imposition of penalties, wherever applicable.To promote early production, rebate on revenue share is provided for. A Single Window Clearance Portal has been launched for expeditious processing of approvals. In addition, reforms such as streamlining the process of approval of Geological Report and permitting accredited private exploration agencies have been undertaken to accelerate mine development. To promote private sector participation, commercial coal mining has been introduced on a transparent revenue-sharing basis with liberalised terms and conditions, including no financial or technical eligibility criteria for participation, no restriction on end-use of coal, reduced upfront payment, adjustment of upfront amount against revenue share, and allowance of 100% Foreign Direct Investment under the automatic route. Further, incentives such as rebate on revenue share for coal utilised in gasification/liquefaction, along with additional incentives for underground coal mines (including reduced floor revenue share, waiver of upfront amount and reduction in performance security) have been provided to improve project viability and attract investment. ******