Pralhad Joshi Coal Minister announced that the 19 mines were auctioned during 1st tranche of coal mine auction. The first tranche of the auction is to generate revenue of Rupees 7,000 crores. The auctioned coal mines have peak rated capacity of 51 MT.

  • Of 19 , 11 auctioned mines were open cast, 5 were of underground and 3 were of mix category.
  • The coal mines are located in Chhattisgarh, Jharkhand, Odisha, Madhya Pradesh and Maharashtra.
  • According to the Coal ministry, the state govts were consulted throughout the auction process.


In June 2020, PM Modi launched the auction process of 41 blocks of commercial mining in india.

Coal Commercial mining

India is the 2nd largest coal importer in the world. To reduce the import of coal and to increase domestic coal mining, the Central Government opened the coal mines to private companies.

What were the coal reforms introduced?

In the country Around 50 blocks of coal mining are to be offered to the private companies, to be awarded on the basis of revenue sharing basis. The coal liquefaction and gasification is to be incentivised. Also, Coal bed methane extraction rights are to be auctioned under coal mines auctions.

Coalbed methane

It is found in 12 states includes:

  • Andhra Pradesh
  • Assam
  • Chhattisgarh
  • Maharashtra
  • Rajasthan
  • Madhya Pradesh
  • Telangana
  • Odisha
  • Jharkhand
  • Gujarat
  • Tamil Nadu
  • West Bengal

Of These, the Gondwana sediments are holding the bulk of these sediments.

Coal Resrves in India

India has the 5th largest coal reserves in the world. Central Government has estimated that India holds 92 trillion cubic feet of coal.

About Coalbed methane

It is formed during coalification. Coalbed methane is used in power generation, as a feedstock for fertilisers. 1st Tranche of Coal Mine Auction 1st Tranche of Coal Mine Auction