The Ministry of Coal has finalized coal mine development and production agreements with Damodar Valley Corporation for three commercial coal blocks: Dhulia North, Mandakini B, and Pirpainti Barahat. These blocks were auctioned successfully under the 13th round of commercial coal mining auctions. This move is a significant step in enhancing India’s energy security and boosting economic growth.
This development marks a crucial milestone in India’s quest for self-reliance in the coal sector. The three coal blocks, Dhulia North, Mandakini B, and Pirpainti Barahat, are fully explored and collectively have a Peak Rated Capacity (PRC) of 49 million tonnes per annum (MTPA). This underscores their strategic importance in meeting the nation’s increasing energy demands.
The projects are expected to yield an estimated annual revenue of Rs 4,621 crore and attract a capital investment of around Rs 7,350 crore. This substantial contribution to economic activity and industrial growth is highlighted in the official statement. Moreover, the development of these coal blocks is projected to create approximately 66,248 direct and indirect job opportunities, fostering livelihoods and regional development in coal-bearing areas.
In August 2025, the Ministry of Coal initiated the 13th round of commercial coal block auctions, successfully auctioning seven coal blocks. Subsequently, in October, vesting orders were issued for eight more blocks. The 13th round of auctions includes both fully and partially explored blocks, incorporating reforms such as incentives for early production and updated penalties for delays.
As part of coal sector reforms, the government has transitioned from a restrictive model to awarding coal mining blocks through competitive bidding. This shift also involves moving from specific end-use prescriptions to allowing commercial coal sales. The auction-based regime introduced in 2014 permitted private sector participation, initially limited to captive usage in self-owned end-use plants. However, in 2020, the sector was opened up for commercial coal mining by private entities.
Commercial coal block auctions follow a two-stage online bidding process, comprising technical screening and submission of competitive initial price offers in the first stage. The second and final stage aims to receive improved price offers.
