New Delhi: The Government of India has successfully auctioned 136 coal blocks since 2020, following recommendations from the Niti Aayog. Minister of State for Coal, Satish Chandra Dubey, informed the Rajya Sabha that these auctions have strengthened transparency, increased competition, and generated substantial revenue for the central government.
Post-2020 auctions are expected to generate approximately ₹43,000 crore once coal production begins, creating employment opportunities for around 5 lakh people across the country. The process has also encouraged participation from private and public sector companies, with 44 new firms taking part in recent auctions.
Telangana Proposal for Tadicherla Coal Block
During the Question Hour, questions were raised regarding the allocation of the Tadicherla coal block in Telangana to state-owned Singareni Collieries. The minister clarified that the Telangana government needs to submit a fresh proposal outlining why this block should be treated differently from others.
“The government is ready to examine the Telangana proposal in the interest of the state’s people, keeping Niti Aayog recommendations in mind,” Dubey said. He noted that Singareni has previously received three blocks—Naini, Penagadapa, and New Patrapada—but only Naini is currently functional.
Emphasis on Participative Bidding and PSU Participation
The government reaffirmed that all coal blocks are offered through competitive auctions for commercial purposes. Direct allotments to Public Sector Units (PSUs) or other entities have been discontinued post-June 2020, except under exceptional circumstances approved by the Ministry of Coal.
“All state governments and PSUs can participate in the auctions. Allocation is based on the highest revenue offer to ensure transparency and fair competition,” the minister said.
Niti Aayog Recommendations Driving Coal Sector Reforms
The auction process follows the recommendations of the High-Level Committee (HLC) on Mines, Minerals, and Coal sectors, headed by the Vice-Chairman of Niti Aayog. The committee was constituted in 2019 to enhance exploration, boost domestic production, reduce imports, and increase coal exports.
The reforms have gradually shifted coal concessions to commercial purposes, strengthening India’s energy sector while promoting private sector participation.
Revenue and Employment Outlook
The government highlighted that revenue from the 136 auctioned coal blocks is projected at ₹43,000 crore, with direct and indirect employment opportunities for 5 lakh people. This move also encourages competition among PSUs and private players, aligning with India’s broader energy and industrial policy goals.
