The Ministry of Coal has issued Vesting Orders for five coal blocks under the ongoing commercial coal auction process, further strengthening India’s coal production and private sector participation. The orders were issued through the Ministry’s Nominated Authority after the signing of Coal Mine Development and Production Agreements (CMDPA) on August 21, 2025.
Details of the Coal Blocks
The newly vested coal blocks include Tandsi III & Tandsi III Extension, Senduri, West of Tubed, Chitarpur (Revised), and Phutamura. Of these, four are partially explored and one is fully explored. Together, they have a Peak Rated Capacity (PRC) of about 3.45 million tonnes per annum (MTPA) and geological reserves estimated at 1,556.31 million tonnes (MT).
Economic and Employment Impact
According to the Ministry, these coal blocks are expected to generate an annual revenue of approximately ₹360 crore and attract capital investment of around Rs. 517 crore. The projects are also estimated to create 4,664 direct and indirect employment opportunities, supporting regional development and ancillary industries such as logistics, machinery, and local services.
Officials said that apart from the fiscal impact, these allocations would strengthen supply chains for power, steel, and cement industries, contributing to the national goal of energy security.
Strengthening India’s Coal Sector
With this latest round of allocations, a total of 125 coal blocks have now been vested or allocated under the commercial auction regime. Collectively, these account for a combined PRC of about 265.844 MTPA, projected to generate annual revenue of Rs. 37,463 crore and provide employment to nearly 3.6 lakh people across the country.
The Ministry stated that the commercial mining initiative is designed to open the coal sector to greater transparency, competition, and private investment. By creating a predictable policy and investment environment, the government aims to reduce import dependency and ensure affordable coal supply for domestic industries.
Aligned with the Vision of Viksit Bharat
The vesting of these five coal blocks represents another step toward achieving the government’s Viksit Bharat vision, promoting economic growth, ensuring energy self-reliance, and creating employment through sustainable resource utilization.
The Ministry of Coal reaffirmed its commitment to expanding private participation while ensuring responsible mining practices and technological innovation to minimize environmental impact.
