The government's auction-based framework initiated in 2015 has led to significant growth in India's coal production, particularly in captive and commercial blocks. This expansion contributes to strengthening the country's energy security and supporting its power and steel industries.
India's reliance on coal as a primary energy source remains substantial, accounting for approximately 55% of the country's energy needs and generating over 70% of electricity. With India holding the world's fifth-largest coal reserves, the country ranks second in global production and consumption.
Domestic coal production has surged since 2014, reaching 1047.52 MT in FY 2024-25 and 1040.08 MT in FY 2025-26, compared to 609.18 MT in FY 2014-15. Approximately five lakh mine workers produce this coal across more than 350 mines.
A substantial part of this growth has come from captive and commercial blocks, whose share of national production has risen from 10.9 per cent in FY 2021-22 to 20.2 per cent in FY 2025-26.
In response to the Supreme Court's cancellation of 204 coal blocks in 2014, the Coal Mines (Special Provisions) Act, 2015 was enacted to establish a transparent auction process. Between 2015 and 2020, ten tranches of auction and nine of allotment restored 76 coal mines to productive use.
On June 2020, commercial coal mining was formally launched under the Aatmanirbhar Bharat mission, permitting the sale of coal on a competitive basis and extending participation beyond the public sector. Successful bidders can now sell coal to any consumer in any sector at market-determined prices without captive-use restrictions or limitations on how the coal is utilized.
Since June 2020, 141 coal mines have been auctioned commercially across 14 rounds, with a combined peak rated capacity of 366.35 MT per annum.
Source:
Press Information Bureau
